The microstructural evolution with isothermal stirring during semi-solid state processing of hypoeutectic Al-6.2wt%Si alloy was studied. Substructure of the individual primary solid particle in the slurry was investigated through transmission electron microscopy(TEM). Formation of subgrain boundaries on the rheocast Al-6.2wt%Si alloy is observed and the misorientation between the grains is shown typically under 2 degrees by analyzing selected area diffraction (SAD) and convergent beam electron diffraction (CBED) patterns. The existence of high angle grain boundaries are also observed in the alloy. Based upon these observations, mechanisms for the primary particles fragmentation are considered. With isothermal stirring, the dislocation density increases, and the evolution of dislocation cell structure takes place, which is interpreted as a process of achieving uniform deformation by dynamic recovery under applied shear stress.