An AC magnetic field (0.5Tesla) is applied with the field direction perpendicular to the rolling direction during annealing of a 76% cold-rolled IF steel sheet. Microstructure and texture evolution in the as-annealed specimens were determined using SEM based OIM technique. It is found that the recrystallization is noticeably retarded by AC magnetic field annealing. At the early stage of recrystallization (annealing at 650°C for 30min), the development of (111) <123> orientations was favored by the AC magnetic field. With progress of recrystallization (annealing at 700°C and 750°C for 30min), the applied AC magnetic field suppressed the development of γ-fiber recrystallization textures to some extent.