The mechanical properties of ferrite-martensited dual phases steels are affected by the microstructural factors, such as martensited volume fractions, ferrite grain size, strength ratio, connectivity, etc. Two phase alloys are technologically important. However, there is a lack of understanding as to stress-strain behavior of dual phase alloy in terms of stress-strain behavior of each component phases. The lack of the understanding stems from the complex deformation behavior of two phase alloys. The aim of this study is to rationalize stress-strain behavior of dual phase alloy in terms of the stress-strain behavior of component phase by systematically considering all the factors listed above. It was found that for a given martensite volume fraction, the calculated stress-strain curve was higher for a finer particles size than for a coarse particle sized within the range of the strains considered, and this behavior was seen for all the different volume fraction alloys considered. The calculated stress-strain curves were compared with corresponding experimental curves, and in general, good agreement was found. The maximum difference in flow stress between the calculated and the experimental results occurs at the nearly beginning of the plastic deformation.