The microstructure of forged products significantly impacts their properties, and defects or carbide distribution are not visible to the naked eye. Isothermal compression tests on M50 steel with a Gleeble 3500 tester were conducted to study microstructure behavior during forging. Tests examined the hot deformation behavior within a temperature range of 900–1200 °C and a strain rate range of 0.01–10 s−1. Power dissipation efficiency (η) and flow instability (ξ), which are crucial processing map parameters, were employed to analyze the high-temperature deformation behavior of M50 steel. The 3D processing map determined the optimum forging conditions, indicating that hot working should start at an initial temperature of 1050 °C or higher and a strain rate of 1 s−1, decreasing the strain rate and temperature as the strain increases. The 3D power dissipation efficiency map displayed an average value of 0.43 or higher at a strain rate of 0.1 s−1 and a temperature of 1150 °C before reaching a strain rate of 0.8. The Finite Element Method (FEM) simulated results, revealing ξ and η distributions, and confirmed that microstructure observation during deformation matched the hot forging parameters. This approach can effectively predict microstructure changes during hot forging.