The microstructure development during plastic deformation was reviewed for iron and steel which were subjected to cold rolling or mechanical milling (MM) treatment, and the change in strengthening mechanism caused by the severe plastic deformation (SPD) was also discussed in terms of ultra grain refinement behavior. The microstructure of cold-rolled iron is characterized by a typical dislocation cell structure, where the strength can be explained by dislocation strengthening. It was confirmed that the increase in dislocation density by cold working is limited at 10(16)m(-2), which means the maximum hardness obtained by dislocation strengthening is HV3.7 GPa. However, the iron is abnormally work-hardened over the maximum dislocation strengthening by SPD of MM because of the ultra grain refinement caused by the SPD. In addition, impurity of carbon plays an important role in such grain refinement: the carbon addition leads to the formation of nano-crystallized structure in iron.