Retained austenite transformation was studied for a 5 wt pct Cr cold work tool steel tempered at 798 K and 873 K (525 degrees C and 600 degrees C) followed by cooling to room temperature. Tempering cycles with variations in holding times were conducted to observe the mechanisms involved. Phase transformations were studied with dilatometry, and the resulting microstructures were characterized with X-ray diffraction and scanning electron microscopy. Tempering treatments at 798 K (525 degrees C) resulted in retained austenite transformation to martensite on cooling. The martensite start (M-s) and martensite finish (M-f) temperatures increased with longer holding times at tempering temperature. At the same time, the lattice parameter of retained austenite decreased. Calculations from the Ms temperatures and lattice parameters suggested that there was a decrease in carbon content of retained austenite as a result of precipitation of carbides prior to transformation. This was in agreement with the resulting microstructure and the contraction of the specimen during tempering, as observed by dilatometry. Tempering at 873 K (600 degrees C) resulted in precipitation of carbides in retained austenite followed by transformation to ferrite and carbides. This was further supported by the initial contraction and later expansion of the dilatometry specimen, the resulting microstructure, and the absence of any phase transformation on cooling from the tempering treatment. It was concluded that there are two mechanisms of retained austenite transformation occurring depending on tempering temperature and time. This was found useful in understanding the standard tempering treatment, and suggestions regarding alternative tempering treatments are discussed. (C) The Author(s) 2017.