On the basis of continuum mechanics and the Mori-Tanaka mean field theory, a micro-mechanical flow stress model that considered both the transformation-induced plasticity (TRIP) effect and the inelastic strain recovery behavior of TRIP multiphase steels was presented. The relation between the volume fraction of constituent phases and plastic strain was introduced to characterize the transformation-induced plasticity effect of TRIP steels. Loading-unloading-reloading uniaxial tension tests of TRIP600 steel were carried out and the strain recovery behavior after unloading was analyzed. From the experimental data, an empirical elastic modulus expression is extracted to characterize the inelastic strain recovery. A comparison of the predicted flow stress with the experimental data shows a good agreement. The mechanism of the transformation-induced plasticity effect and the inelastic recovery effect acting on the flow stress is also discussed in detail.