This study investigated the effects of normalizing and tempering on microstructures and mechanical properties of reduced activation ferritic/martensitic steel with Y and Zr. The thermal stability and mechanical properties of the steel, subjected to two normalizing and one tempering (intermediate) treatment, were examined during aging at 823 K for 5000 h. OM, SEM and TEM were employed to observe microstructures and precipitates. Hardness, tensile and impact properties were measured using a microhardness tester, electronic universal material testing machine and pendulum impact testing machine. The results show that the optimal treatment was identified at 1323 K x 30 min + 1193 K x 30 min, yielding strength of 642 MPa at room temperature (RT) and a ductile-brittle transition temperature (DBTT) of 193 K. When the tempering temperature was raised from 963 K to 1063 K, the yield strength of the steel decreased from 724 MPa to 504 MPa, elongation increased from 17.9% to 25.6%, and DBTT decreased from 228 K to 221 K. The intermediate treatment (1323 K x 30 min + 1193 K x 30 min + 1028 K x 90 min) resulted in fine carbides, enhancing mechanical properties. The steel was stabilized to martensite after aging for 5000 h at 823 K. The Laves phase content increased during the aging process and became stable after aging for 2500 h. The yield strength of the steel after aging for 5000 h was 638 MPa (RT) and 308 MPa (923 K), with an impact energy of 313 J at RT and a DBTT of 204 K. Initial fine grain and M23C6, pinning of Y-Zr-O and precipitation of Laves phases were responsible for good mechanical properties and microstructural stability of the alloy.