1.65V, 0.26C steel with addition of 1Ni was selected to investigate property variations according to the microstructural changes. Isothermal heat treatment was performed at 750℃ for 20 minutes and hardness was measured as Rc27. The structures were ferritic with two kinds of vanadium carbides i.e. fibrous carbide and particle-like one. The dual phase microstructures having the same Rockwell hardness were obtained by heating the vanadium steel at 900℃ for 10 minutes. The conventional quenching and tempering heat treatment was followed at 650℃ for 17 hours and the microstructures revealed Widmanstatten carbides and carbides precipitation at lath boundaries. The mechanical properties were determined from tensile tests and compared with the observed microstructures.