The effect of grain size on the deformation induced martensite transformation and mechanical properties in austenitic stainless steel with high amount of Mn was studied. a'-martensite was formed by deformation and deformation induced martensite was formed with surface relief. With increase of grain size, volume fraction of deformation induced martensite was increased. With the increase in degree of cold rolling, hardness, and tensile strength was rapidly increased with linear relationship, while, elongation was decreased rapidly and then decreased slowly. With increase of grain size, hardness and tensile strength was rapidly increased with linear relationship, while elongation was decreased rapidly. The hardness, tensile strengths, and elongation were more strongly influenced by deformation induced martensite than the grain size.