A cold rolled dual phase (DP) steel with the C-Si-Mn alloy system was trial-produced in the laboratory, utilizing a Gleeble-3800 thermal simulator. The effects of continuous annealing parameters on the mechanical properties and microstructures of the DP steel were investigated by mechanical testing and microstructure observation. The results show that soaking between 760 and 820℃ for more than 80 s, rapid cooling at the rate of more than 30℃/s from the quenching temperature between 620 and 680℃, and overaging lower than 300℃ are beneficial for the mechanical properties of DP steels. An appropriate proportion of the two phases is one of the key factors for the favorable properties of DP steels. If the volume fraction of martensite and, thereby, free dislocations are deficient, the tensile strength and n value of DP steels will decrease, whereas, the yield strength will increase. But if the volume fraction of martensite is excessive to make it become a dominant phase, the yield and tensile strength will increase, whereas, the elongation will decrease obviously. When rapid cooling rate is not fast enough, pearlite or cementite will appear, which will degrade the mechanical properties. Even though martensite is sufficient, if it is decomposed in high temperature tempering, the properties will he unsatisfied.