Microstructures and mechanical properties of variously heat treated 0.85% carbon steel(eutectoid steel) were evaluated by magnetic property measurements. Microstructural analysis (pearlite interstellar spacing), measurement of mechanical properties(Rockwell hardness, yield stress, fracture stress) and magnetic properties(coercivity, remanence, hysteresis loss, saturation magnetization) were performed to clarify mutual relationships among these parameters. Water quenched specimens with martensite structure showed much higher coercivity and remanence than air cooled or furnace cooled specimens with pearlite structure. The linear dependence of coercivity and remanence on pearlite interlamellar spacing as well as on Rockwell hardness, yield stress and fracture stress was observed in the pearlitic steel. Hysteresis loss and saturation magnetization showed no distinct trend with pearlite interlamellar spacing.