The present study aims to understand the evolution of microstructure leading to nano/ultrafine grain formation during cyclic thermal process. A commercial grade of AISI 304L austenitic SS was cold rolled which resulted in a creation of a dual microstructure having strain induced martensite (43%) and heavily deformed retained austenite. The dual phase microstructure was subjected to cyclic thermal annealing process at 825 °C. The events occurring in; a) retained austenite and b) reverted austenite formed by phase reversion of strain induced martensite, during annealing treatment, were studied by the Electron backscattered diffraction (EBSD). The study revealed recrystallisation process of the two austenite grains, which resulted into ultrafine grain formation during cyclic thermal process.