Abstract. The aim of the investigation is to study the changes in the characteristics of an austenitic sheet material X5CrNi18-10 (1.4301, AISI 304) after a plastic deformation. Samples are cut out from the sheet material at three different directions -0°, 45° and 90° angle to the rolling direction. The changes in the mechanical properties and microstructure of the anisotropic austenitic steel are investigated by mechanical tests (uniaxial tension tests and hardness measurements) and structural analyses (optical and scanning electron microscopy, X-ray diffraction). It is established that the strain induced phase transformation of the metastable austenite to martensite during the tension tests changes the magnetic properties of the steel. It is found out that the sheet anisotropy effect on the uniform deformation, the thickness reduction and structure of the austenite sheet material is more essential for the plastic deformation behaviour than the strain-induced Ȗ ĺ Įǯ phase transformation.