The influence of initial grain size on the softening-precipitation interaction in a low niobium microalloyed steel has been investigated. The study has revealed that for the largest initial grain size (1000 μm), the recrystallised fraction remains lower than the softening fraction until relatively long times are reached. In contrast, for the smallest initial grain size (166 μm) both magnitudes are similar. As a result, precipitation interacts with recrystallisation in the case of the finest austenite grain size, whereas for the coarsest one, since recrystallisation is significantly retarded, interaction with recovery process is observed. Apparently, the initial austenite grain size does not affect precipitation kinetics.