Gradient-dependent plasticity is introduced into the phenomenological Johnson-Cook model to study the effects of strain-hardening, strain rate sensitivity, thermal-softening, and microstructure. The microstructural effect (interactions and interplay among microstructures) due to heterogeneity of texture plays an important role in the process of development or evolution of an adiabatic shear band with a certain thickness depending on the grain diameter. The distributed plastic shear strain and deformation in the shear band are derived and depend on the critical plastic shear strain corresponding to the peak flow shear stress, the coordinate or position, the internal length parameter, and the average plastic shear strain or the flow shear stress. The critical plastic shear strain, the distributed plastic shear strain, and deformation in the shear band are numerically predicted for a kind of steel deformed at a constant shear strain rate. Beyond the peak shear stress, the local plastic shear strain in the shear band is highly nonuniform and the local plastic shear deformation in the band is highly nonlinear. Shear localization is more apparent with the increase of the average plastic shear strain. The calculated distributions of the local plastic shear strain and deformation agree with the previous numerical and experimental results.