During large strain deformation of materials, the width of the initial high angle grain boundaries approaches the order of mean diffusion distances encountered during elevated temperature deformation. Since the evolution of ultrafine grains is attributed to thermally activated processes, the role of interfaces in determining the grain size is significant. In order to investigate into this role, microstructure development in low carbon steel (0.15% C) subjected to large strain deformation was studied with specific reference to the controlling mechanism of ferrite grain size evolution. Plane strain compression tests have been conducted in the temperature range of 773-923K at strain rates of 0.01 s -1 and 1 s-1 and the specimens were deformed to 25% of the original thickness and the Microstructural evolution is studied. Based on the results obtained, diffusion along grain boundaries was found to be the mechanism controlling ferrite grain size in this material processed through large strain deformation.