A method based on the kinetics of crystal growth has been developed and applied to the computation of three-dimensional microstrucuture in austenite-matensite steels. The detailed crystallography of the transformation is used to model a realistic martensitic microstrucuture during the transformation without an external system of stresses. The interaction energy based on the plastic work model is taken into account to compute the variant selection in an austenitic stainless steel and formation of martensite under externally applied stress.