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Development of TRIP aided ferrous alloys is one answer to the demand for weight decrease in the automotive industry. The microstructure of hot rolled and cold rolled TRIP steels is quite complex and the optimisation of such steel products requires a detailed understanding of the mechanisms of phase transformation, during thermomechanical treatment as well as during mechanical testing or metal forming. We present in this paper the results obtained at Irsid concerning the study of austenite stabilisation through bainitic transformation during thermal treatment and its transformation into martensite during mechanical testing. First of all, the characterisation methods are presented. An effort has to be put on this point due to the refinement of the microstructure of TRIP steels, especially the size of austenite and martensite islands. Carbon replicas for the observation by means of transmission electron microscopy (TEM) are used to analyse the morphological features of the microstructure - nature of the constituents, size and shape - and the composition of cementite particles present in the steels. The mean value for this carbon content in retained austenite is deduced from X-ray diffraction measurements. Then the kinetics of bainitic transformation are discussed as well as cementite precipitation. The typical composition of the steel studied is 0.5 % C, 1.5 % Mn. The use of 0.5 % C steels facilitates the study of bainitic transformation by avoiding the ferrite formation usually occurring in TRIP steels. Cementite nucleation appears at the ferrite/austenite interface without any partitionning of substitutional elements. To satisfy thermodynamic equilibrium at the interface, the silicon content on the cementite side is very low and high on the austenite side. Then, carbon diffusion towards austenite is delayed and, as a consequence, cementite growth is also delayed. As the diffusion kinetics are low at 400 °C, cementite keeps this non partitioned composition, even after 3 hours holding. At 500 °C, diffusion kinetics are higher and cementite composition approaches that predicted by equilibrium. Finally, the stability of retained austenite during mechanical testing is studied. Before and after mechanical testing the morphological characteristics of the microstructure (austenite island size and elongation) are analysed by TEM replicas and image analysis. There is a high density of very small austenite islands but they represent only a small fraction of the total retained austenite. These results confirm and quantify the size effect on austenite stabilisation during deformation.