There is often a tradeoff between strength and ductility, and the low ductility of ultrafine-grained (UFG) materials has been a major obstacle to their practical structural applications despite their high strength. In this study, we have achieved a ∼40% tensile ductility while increasing the yield strength of FeCrNiMn steel by an order of magnitude via grain refinement and deformation-induced martensitic phase transformation. The strain-rate effect on the inhomogeneous deformation behavior and phase transformation was studied in detail.