In this study, ultrafine grained dual phase structures have been developed in a plain low carbon steel, 0.17C and 0.74Mn (wt pct). The approach is based on rapid heating of a very fine ferrite-carbide aggregate into the intercritical annealing region followed by water quenching. This rapid heat treatment results in an ultrafine grained dual phase steel with improved properties. The effect of thermomechanical processing parameters such as heating rate and intercritical annealing time on the microstructure and mechanical properties have been examined. The key factors contributing to the grain refinement are uniform distribution of nanosize cementite particles acting as potential sites for austenite nucleation as well as the limited time available for coarsening of the microstructure. The mechanical properties of the present ultrafine grained dual phase steel show an excellent combination of strength and uniform elongation because of considerable work hardening.