By careful design of rolling schedule,ultra-fine (~2μm) ferrite grains in a low carbon high niobium (0.09wt%Nb) microalloying steel with average austenite grain sizes above 800 μm can be achieved in the simulated thin slab direct rolling process. The 5-pass deformation was divided into two stages: the refinement of austenite through complete recrystallization and the refinement of ferrite through dynamic strain-induced transformation. The effects of Nb in solution and strain-induced NbCN precipitates on the ferrite transformation were also extensively discussed.