The deformation behaviour of martensite and its effect on tensile properties of a lowcarbon dual-phase (DP) steel were investigated. DP steel samples with different martensite contents and morphologies were produced after intercritical annealing at different temperatures using low and high heating rates. Two distinct martensite morphologies were obtained for low and high heating rates. The investigated steel showed the unusual results that the true fracture stress and strain were found to increase with the martensite volume fraction. The plastic deformation of martensite was considered to be responsible for these results. Experimentally, it was observed that the martensite in DP steels with greater than 25-30% martensite can deform plastically during tensile straining. Finally, the effect of tempering on the martensite plasticity was also evaluated. It was found that the tempering process and an increase in the martensite content have a similar effect on promoting martensite plasticity.