The phases structure, the lattice strains, microstructure of the Fe-16.5Cr-18.8Mn-0.53N-0.1C steel after the tensile tests, performed at temperatures 77-293 K, were investigated by XRD and TEM methods. The results indicated that transformations epsilon -> gamma reduces the ductility of the steel, which has maximum at temperatures of 253-273 K. The epsilon -> gamma transformation takes place only at the region of deformation localization and it precedes the fracture. With decreasing of the test temperature to 77 K the epsilon -> gamma transformation progresses over the entire area of the deformed samples.<bold> </bold>