In this paper, four different steel compositions, centered on Mn as the main alloying element, are designated as candidates for Third Generation AHSS grades. The design of these steels is based on controlling the deformation behavior of the retained austenite. Thus, heat treatment process parameters are determined in order to obtain different amounts and morphologies of retained austenite. The evolution of the microstructure, during processing as well as deformation, is characterized by using optical, electron microscopy techniques and mechanical tests. The effect of alloy composition and processing parameters on the deformation mechanisms of these steels is discussed.