This article presents an overview of research of our group on transformation of microstructure and texture in metals during annealing operations. A computer model is presented that allows simulating texture and microstructure at various stages of the annealing process. The model incorporates a description of the initial texture and microstructure, the anisotropy of stored energy of deformation, conditions of nucleation and differences in mobility of various types of grain boundaries. Several examples are presented to illustrate various factors that influence texture transformation. In particular texture transformation in IF steels, aluminum alloy used in can manufacturing and Fe-Si grain oriented steels is discussed. The presented examples illustrate transformation of texture and microstructure in important industrial materials and propose physical models that govern these transformations. X-ray diffraction, neutron diffraction, and SEM orientation imaging experiments are used to support assumptions on which computer simulations are based.