The influence of austempering temperature and time on the microstructure and hardness of a low-alloyed bainitic steel is investigated in the temperature range 275 °C to 375 °C for up to 24 hours. It is shown that the dislocation density and coarseness of the bainitic microstructure are affected by the austempering temperature, while only the dislocation density is significantly affected by the austempering time. The hardness of the steel is estimated based on microstructure–property relations and is in good agreement with the measured hardness. In conclusion, the decrease in dislocation density is the main reason for loss in hardness upon increasing austempering temperature and/or time for the studied temperature range.