Austenite recrystallization and ferrite transformation behaviour of a Ti treated low carbon TiO steel was studied by uniaxial hot compression in a temperature range of 780 to 1300°C. The results have been compared to that of a conventional TiN steel. It was found that large oxide particles present in TiO steel have shown ability to stimulate recrystallization nucleation and transformation during deformation but failed to accelerate recrystallization of bulk material because of an insufficient volume fraction of these large particles in the steel. The influence of Ti : N ratio in TiO steel is critical to TiN precipitation behaviour which affects microstructural development during thermomechanical processing. TiN precipitates in TiO steel are coarser in comparison to conventional Ti microalloyed steel thus reducing grain boundary pinning effects. It was also found that recrystallization of ferrite in cold worked TiO and TiN steels was not affected significantly by large particles and fine precipitates but controlled by pearlite size and distribution.