This document investigates the effect of cementite particles on microstructure refinement and formation of high angle boundaries in low carbon steel. Warm deformation tests were conducted on a 0.16C steel and an ultra-low carbon steel up to a strain of 5 at 685°C and 0.1 s-1 strain rate. Electron backscatter diffraction analysis showed that cementite precipitation and ferrite recrystallization led to the formation of high angle boundaries and grain refinement during subcritical deformation. Flow stress was higher for the 0.16C steel due to cementite particles anchoring grain boundaries.