The temperature-dependent microstructure evolution and corresponding mechanical stability of retained austenite in medium-Mn transformation induced plasticity (TRIP) 0.17C-3.1Mn-1.6Al type steel obtained by thermomechanical processing was investigated using scanning electron microscopy (SEM), electron backscatter diffraction (EBSD), and X-ray diffraction (XRD) techniques. Specimens were deformed up to rupture in static tensile tests in the temperature range 20−200 °C. It was found that an increase in deformation temperature resulted in the reduced intensity of TRIP effect due to the higher stability of retained austenite. The kinetics of strain-induced martensitic transformation was affected by the carbon content of retained austenite (RA), its morphology, and localization in the microstructure.