This document summarizes the iron-carbon phase diagram and the microstructures of carbon steel. It describes the different phases that can exist (austenite, ferrite, cementite, pearlite, martensite) based on carbon content and cooling rate. Slow cooling results in a coarse pearlite structure that is soft and easy to machine but lacks toughness, while faster cooling produces a fine structure of alternating ferrite and cementite plates that is harder and tougher. Rapid cooling leads to martensite, a very hard structure with distorted crystal structure. Annealing softens the steel by slowly cooling from the austenite phase.