This paper deals with the microstructural and mechanical properties of a transformation-induced plasticity-aided martensitic (TM) steel that is expected to serve as an advanced structural steel for automotive applications. The microstructure consisted of a wide lath-martensitestructured matrix and a mixture of narrow lath-martensite and metastable retained austenite of 2-5 vol% (MA-like phase). When 1%Cr and 1%Cr-0.2%Mo were added into 0.2%C-1.5%Si-1.5%Mn steel to enhance its hardenability, the resultant TM steels achieved a superior cold formability, toughness, fatigue strength, and delayed fracture strength as compared to conventional structural steel such as SCM420. These enhanced mechanical properties were found to be mainly caused by (1) plastic relaxation of the stress concentration, which resulted from expansion strain on the strain-induced transformation of the metastable retained austenite, and (2) the presence of a large quantity of a finely dispersed MA-like phase, which suppressed crack initiation or void formation and subsequent void coalescence.