The current work has investigated the texture development in an austenitic Ni-30Fe model alloy during deformation within the dynamic recrystallization (DRX) regime and after post-deformation annealing. Both the deformed matrix and DRX texture displayed the expected FCC shear components, the latter being dominated by the low Taylor factor grains, which was presumably caused by their lower consumption rate during DRX. The deformed matrix grains were largely characterized by organized, microband structures, while the DRX grains showed more random, complex subgrains/cell arrangements. The latter substructure type proved to be significantly less stable during post-deformation annealing. The recrystallization of the deformed matrix occurred through nucleation and growth of new grains fully replacing the deformed structure, as expected for the classical static recrystallization (SRX). Unlike the DRX grains, the SRX texture was essentially random. By contrast, a novel softening mechanism was revealed during annealing of the fully DRX microstructure. The initial post-dynamic softening stage involved rapid growth of the dynamically formed nuclei and migration of the mobile boundaries in line with the well-established metadynamic recrystallization (MDRX) mechanism, which weakened the starting DRX texture. However, in parallel, the sub-boundaries within the deformed DRX grains progressively disintegrated through dislocation climb and dislocation annihilation, which ultimately led to the formation of dislocation-free grains. Consequently, the weakened DRX texture largely remained preserved throughout the annealing process.