The relationship between plastic deformation and crystal grain change in warm forging processes of SM10C carbon steel is studied. If the carbon steel is deformed at warm forging temperature(about recrystallization range), material properties are changed due to microstructural chanre of the crystal grain and cementite of the internal part. Some experimental values are investigated in terms of the elliptic degree of cementite, the grain size of cementite and ferrite grain size. When plastic deformation proceeds, the elliptic degree of cementite becomes larger and the grain size of cementite particle becomes small. In addition, the size of ferrite grain becomes fines by recrystallization. The elliptic degree of cementite has a considerable effect on formability. The distribution of effective strain in the forging was calculated by the rigid visco-plastic FEM analysis. The effective strain distribution obtained from the FEM simulation is compared with the experimental result, At the level of effective strain 0.3, dynamic recovery and dynamic recrystallization begin and at the level of over 2.5, the organization of material has better internal structure that is suitable for the following cold forming.