A novel thermomechanical process to manufacture hot-rolled transformation-induced plasticity (TRIP) steels was developed based on dynamic transformation of undercooled austenite (DTUA). Between DTUA and the isothermal bainitic treatment, only one-step controlled-cooling was required. The microstructure evolution of hot-rolled C-Mn-Si and C-Mn-Al-Si TRIP steels based on DTUA was investigated by hot uniaxial compression tests using a Gleeble1500 simulation test machine. The results indicated that during DTUA, the kinetics of ferrite formation was fast, the volume fraction of ferrite formed was determined by applied strain. In comparison with the process based on static transformation of austenite, a more uniform multiphase microstructure with fine ferrite grains was formed, the bainite packets were small and had relatively random orientations, the retained austenite distributed uniformly and had relatively high volume fraction. Hot-rolled TRIP steels based on DTUA demonstrated better mechanical properties, especially for C-Mn-Al-Si TRIP steel.