In-situ high-energy X-ray diffraction and material modeling are used to investigate the strain-rate dependence of the strain-induced martensitic transformation and the stress partitioning between austenite and alpha' martensite in a metastable austenitic stainless steel during tensile loading. Moderate changes of the strain rate alter the strain-induced martensitic transformation, with a significantly lower alpha' martensite fraction observed at fracture for a strain rate of 10(-2) s(-1), as compared to 10(-3) s(-1). This strain-rate sensitivity is attributed to the adiabatic heating of the samples and is found to be well predicted by the combination of an extended Olson-Cohen strain-induced martensite model and finite-element simulations for the evolving temperature distribution in the samples. In addition, the strain-rate sensitivity affects the deformation behavior of the steel. The alpha' martensite transformation at high strains provides local strengthening and extends the time to neck formation. This reinforcement is witnessed by a load transfer from austenite to alpha' martensite during loading.