Changes in the microstructure of nanostructured bainitic steel induced by quasi-static and dynamic deformation have been shown in the article. The method of deformation and strain rate have important impact on the microstructure changes especially due to strain localization. Microstructure of nanostructured steel Fe-0.6%C-1.9Mn-1.8Si-1.3Cr-0.7Mo consists of nanometer size carbide-free bainite laths and 20-30% volume fraction of retained austenite. Quasi-static and dynamic (strain rate up to 2×102 s−1) compression tests were realized using Gleeble simulator. Dynamic deformation at the strain rate up to 9×103 s−1 was realized by the Split Hopkinson Pressure Bar method (SHPB). Moreover high energy firing tests of plates made of the nanostructured bainitic steel were carried out to produce dynamically deformed material for investigation. Adiabatic shear bands were found as a result of localization of deformation in dynamic compression tests and in firing tests. Microstructure of the bands was examined and hardness changes in the vicinity of the bands were determined. The TEM examination of the ASBs showed the change from the internal shear band structure to the matrix structure to be gradual. This study clearly resolved that the interior (core) of the band has an extremely fine grained structure with grain diameter ranging from 100 nm to 200 nm. Martensitic twins were found within the grains. No austenite and carbide reflections were detected in the diffraction patterns taken from the core of the band. Hardness of the core of the ASBs for examined variants of isothermal heat treatment was higher about 300 HV referring to steel matrix hardness.