Six hot compression tests are conducted using the Gleeble3500 thermomechanical simulator to investigate the microstructural evolution and precipitation behavior in low‐C–Mn V‐microalloyed steel. The specimens are subjected to hot isothermal compression deformation of 87%. The optical microscopy and transmission electron microscopy using carbon extraction replica method are used to characterize the microstructures and precipitation after the simulated thermomechanical controlled process and coiling. The results indicate that increasing the finish rolling temperature benefits the refinement of ferrite grains but has little influence on the refinement of the precipitates. It is also observed that lower coiling temperatures (CTs) promote the formation of fine precipitates. When the CT is 500 °C, the average precipitate size is found to be 86 nm. Furthermore, it is found that the CT significantly influences the nucleation sites of the precipitates inter alia, the matrix, interphase, grain boundaries, and dislocations. As expected, at higher CTs, nucleation is predominantly on the defects rather than the matrix.