A novel concept of two-step austempering in a magnetic field has been conceived by this investigator. This twostep process involves first quenching the alloy to a lower temperature after austenitizing and then immediately rising the temperature of the quenching media to a higher temperature and the whole austempering process is carried out in the presence of a high magnetic field. In this investigation, Austempered Ductile Iron (ADI) was processed by this novel two-step austempering process in a high magnetic field of 20 Tesla. The microstructure and the mechanical properties of the ADI processed in a magnetic field has been characterized and compared with ADI processed by conventional process. The results of this investigation indicate significant improvement in the mechanical properties of ADI when Austempered in a high magnetic field. Both yield and tensile strengths were higher in the samples processed in the presence of a magnetic field. Very fine grain ferrite and austenite was obtained in the microstructure. The ferrite content was also significantly higher.