To reveal the effect of Mg addition on the austenite grain growth in low-carbon steel, the steels containing different Mg contents were refined with a vacuum induction furnace. First, the steels were subjected to the temperature range of 1000-1300°C for a holding time of 30 min. Moreover, using a confocal scanning laser microscope, the growth of austenite grains was investigated under isothermal holding conditions (1400°C), and the γ-α phase transformation was also identified after the samples were subjected to a cooling rate of 5°C s −1 . It reveals that the grain growth is inhibited by Mg addition after increasing the temperature to 1300°C. The kinetic equations of austenite grain growth were further established by regression analysis based on the experimental results. Furthermore, a significant increase in the proportion of intra-granular ferrite takes place in 0.0026% Mg-added steel at the initial stage of γ → α with a cooling rate of 5°C s −1 . This is mainly attributed to the plenty of Mg-containing inclusions, which are demonstrated to be effective nuclei for acicular ferrite, being in the Mg-added steel.