The microstructure evolution of different cold rolling reductions (from 0 to 81.6% ) was studied by SEM (scanning electron microscopy) and TEM (transmission electron microscope). The study showed that the orientation multiplicity of pearlitic lamellas resulted in inhomogeneous deformation of different pearlitic lamellas, and with the increase of reduction, the microstructure underwent a course of homogeneity→ inhomogeneity → homogeneity . The result of XRD (X-ray diffraction)analysis indicated that cementite did not decompose and dissolve into ferrite; the results of the mechanical property test suggested that the relationship between Rp0.2 (yield strength) and ε (true strain) was in good agreement with Hollomon relationship. With the equation Rp0.2 = 1465ε0.18, the yield strength of the steel in different reductions could be well predicted.