A study has made on the effects of morphology on mechanical properties of dual phase(ferrite ＋ martensite) steels produced by combination of controlled rolling and step quenching (CRSQ). The structures obtained by step quenching are generally coarser and have inferior mechanical properties compared to those by intermediate quenching or intermediate air cooling. However, step quenching process has an advantage in fuel efficiency by omitting extra heat treatment. Austenite grain can be refined by controlled rolling prior to step quenching. Therefore, appyling controlled rolling to step quenching would improve at strength and ductility by refining microstructure and save energy by reducing process. In this new process, the strength was increased by 7%, and the ductility was improved by 16% in comparison with specimens made by step quenching alone. The optimum combination of strength and ductility was obtained by holding at 760℃ for 10min.