A challenge was made to examine the micro-structural evolution during thermomechanically controlled processing (TMCP) by in situ neutron diffraction. Since the neutron beam is too weak to achieve a time-division measurement to follow a rapid transformation in alow carbon steel, 2%Mn was added to make the austenite to ferrite transformation slower. Round bar specimens were heated up to 900°C with an electrical resistance method, then cooled down to 700°C, and compressed by 25% followed by step-by-step cooling. During the step-by-step cooling, neutron diffraction profiles were obtained and the volume fraction of ferrite, phase stresses and FWHM were analyzed. Using a similar TMCP simulator, specimens were quenched into water at several stages of the heat schedule to freeze the corresponding microstructures, which were observed with OM and SEM. As results, the ferrite volume fraction determined by neutron diffraction on cooling agrees well with that by microscopy. It is found that the austenite deformation and/or Nb addition accelerate the ferrite transformation to result in finer grain size.