The early stages of recovery and recrystallisation were studied using transmission electron microscopy in four warm rolled low carbon steels. Three of these contained additions of chromium and of the latter, one was phosphorus and a second boron modified. Addition of the alloying elements led to the formation of both shear and microbands within some of the grains. The progress of recovery in these areas differed from that applicable to the grains containing only microbands. Two types of carbides were present after warm rolling in the steels containing the alloying additions: (i) coarse carbides; and (ii) fine strain-induced particles. The coarse carbides underwent spheroidization and coarsening during annealing. They, on the one hand, accelerated recrystallisation as the particles stimulated nucleation; on the other hand, they retarded it by pinning both the high and low angle grain boundaries. These carbides also influenced the morphology of the recrystallised grains by restraining their growth.