The effects of Cr and/or Mo additions and tempering temperatures on mechanical properties in relation to the microstructural evolution during tempering were investigated in induction-tempered steels. The additions of Cr and/or Mo result in the finer distribution of cementite particles due to the decrease in the coarsening rates of cementite particles above tempering temperature of 400degreesC, while their influence is less effective at low tempering temperatures. Accordingly, the increments of tensile strength and yield strength by the addition of alloying elements become more pronounced at high temperatures above 400degreesC. The occurrence of maximum peak of yield strength at 400degreesC would be related to further precipitation of the cementite at low temperatures, and the subsequent spheroidization and coarsening process of the cementite at high temperatures. The addition of alloying elements does not change the minima in Charpy impact values, related to tempered martensite embrittlement, since alloying elements do not have an influence on the decomposition of retained austenite and the formation of the cementite at boundaries. The strain-hardening exponent, n, decreases up to 400degreesC and then continuously increases with tempering temperature. This abrupt increase of n at 300degreesC is related to the transformation of retained austenite during straining in induction-tempered steels. (C) 2003 Kluwer Academic Publishers.