The purpose of heat treating carbon steel is to change the mechanical properties of steel, usually ductility, hardness, yield strength, or impact resistance. Note that the electrical and thermal conductivity are only slightly altered. As with most strengthening techniques for steel, Young's modulus (elasticity) is unaffected. All treatments of steel trade ductility for increased strength and vice versa. Iron has a higher solubility for carbon in the austenite phase; therefore all heat treatments, except spheroidizing and process annealing, start by heating the steel to a temperature at which the austenitic phase can exist. The steel is then quenched (heat drawn out) at a moderate to low rate allowing carbon to diffuse out of the austenite forming iron-carbide (cementite) and leaving ferrite, or at a high rate, trapping the carbon within the iron thus forming martensite. The rate at which the steel is cooled through the eutectoid temperature (about ) affects the rate at which carbon diffuses out of austenite and forms cementite. Generally speaking, cooling swiftly will leave iron carbide finely dispersed and produce a fine grained pearlite and cooling slowly will give a coarser pearlite. Cooling a hypoeutectoid steel (less than 0.77 wt% C) results in a lamellar-pearlitic structure of iron carbide layers with α-ferrite (nearly pure iron) between. If it is hypereutectoid steel (more than 0.77 wt% C) then the structure is full pearlite with small grains (larger than the pearlite lamella) of cementite formed on the grain boundaries. A eutectoid steel (0.77% carbon) will have a pearlite structure throughout the grains with no cementite at the boundaries. The relative amounts of constituents are found using the lever rule. The following is a list of the types of heat treatments possible:
; Spheroidizing: Spheroidite forms when carbon steel is heated to approximately  for over 30 hours. Spheroidite can form at lower temperatures but the time needed drastically increases, as this is a diffusion-controlled process. The result is a structure of rods or spheres of cementite within primary structure (ferrite or pearlite, depending on which side of the eutectoid you are on). The purpose is to soften higher carbon steels and allow more formability. This is the softest and most ductile form of steel.
; Full annealing: Carbon steel is heated to approximately  for 1 hour; this ensures all the ferrite transforms into austenite (although cementite might still exist if the carbon content is greater than the eutectoid). The steel must then be cooled slowly, in the realm of 20 °C (36 °F) per hour. Usually it is just furnace cooled, where the furnace is turned off with the steel still inside. This results in a coarse pearlitic structure, which means the "bands" of pearlite are thick. Fully annealed steel is soft and ductile, with no internal stresses, which is often necessary for cost-effective forming. Only spheroidized steel is softer and more ductile.
; Process annealing: A process used to relieve stress in a cold-worked carbon steel with less than 0.3% C. The steel is usually heated to  for 1 hour, but sometimes temperatures as high as . The image above shows the process annealing area.
; Isothermal annealing: It is a process in which hypoeutectoid steel is heated above the upper critical temperature. This temperature is maintained for a time and then reduced to below the lower critical temperature and is again maintained. It is then cooled to room temperature. This method eliminates any temperature gradient.
; Normalizing: Carbon steel is heated to approximately  for 1 hour; this ensures the steel completely transforms to austenite. The steel is then air-cooled, which is a cooling rate of approximately  per minute. This results in a fine pearlitic structure, and a more-uniform structure. Normalized steel has a higher strength than annealed steel; it has a relatively high strength and hardness.
; Quenching: Carbon steel with at least 0.4 wt% C is heated to normalizing temperatures and then rapidly cooled (quenched) in water, brine, or oil to the critical temperature. The critical temperature is dependent on the carbon content, but as a general rule is lower as the carbon content increases. This results in a martensitic structure; a form of steel that possesses a super-saturated carbon content in a deformed body-centered cubic (BCC) crystalline structure, properly termed body-centered tetragonal (BCT), with much internal stress. Thus quenched steel is extremely hard but brittle, usually too brittle for practical purposes. These internal stresses may cause stress cracks on the surface. Quenched steel is approximately three times harder (four with more carbon) than normalized steel.
; Martempering (marquenching): Martempering is not actually a tempering procedure, hence the term marquenching. It is a form of isothermal heat treatment applied after an initial quench, typically in a molten salt bath, at a temperature just above the "martensite start temperature". At this temperature, residual stresses within the material are relieved and some bainite may be formed from the retained austenite which did not have time to transform into anything else. In industry, this is a process used to control the ductility and hardness of a material. With longer marquenching, the ductility increases with a minimal loss in strength; the steel is held in this solution until the inner and outer temperatures of the part equalize. Then the steel is cooled at a moderate speed to keep the temperature gradient minimal. Not only does this process reduce internal stresses and stress cracks, but it also increases impact resistance.
; Tempering: This is the most common heat treatment encountered because the final properties can be precisely determined by the temperature and time of the tempering. Tempering involves reheating quenched steel to a temperature below the eutectoid temperature and then cooling. The elevated temperature allows very small amounts spheroidite to form, which restores ductility but reduces hardness. Actual temperatures and times are carefully chosen for each composition.
; Austempering: The austempering process is the same as martempering, except the quench is interrupted and the steel is held in the molten salt bath at temperatures between , and then cooled at a moderate rate. The resulting steel, called bainite, produces an acicular microstructure in the steel that has great strength (but less than martensite), greater ductility, higher impact resistance, and less distortion than martensite steel. The disadvantage of austempering is it can be used only on a few sheets of steel, and it requires a special salt bath.