High-resolution transmission electron microscopy and three-dimensional atom probe observations show clearly that a reverse transformation of body-centred cubic ferrite to face-centred cubic austenite occurs during severe plastic deformation of a pearlitic steel resulting in a nanocrystalline structure, something that never occurs in conventional deformation of coarse-grained iron and steels. The driving force and the mechanisms of this reverse transformation are discussed. It is shown that nanostructure and shear stresses are essential for this process, and the results confirm molecular dynamics predictions of such transformations in nanocrystalline iron
