Grain refinement is one of the effective methods to develop new generation low carbon microalloyed steels possessing excellent combination of mechanical properties. The microstructural evolution and ferrite grain refinement at the de-formation temperature of 865℃, above Ar3, with different strain rates were investigated using single pass isothermal hot compression experiments for a low carbon Nb-Ti microalloyed steel. The physical processes that occurred during deformation were discussed by observing the optical microstructure and analyzing the true stress-true strain responses.At strain rates of 0.001 and 0.01 s-1, there is no evidence of work hardening behavior during hot deformation and strain-induced transformation (SIT) leads to dynamic flow softening in flow curves. Optical microscopy observation shows that ultrafine and equiaxed ferrite with grain sizes of 2μm can be obtained by applying deformation with strain rate of 0.1 s-1 due to SIT just after deformation. Furthermore, increasing the strain rate from 0.001 to 0.1 s-1reduces both the grain size of the equiaxed ferrite and the amount of deformed ferrite.