The effects of the annealing parameters on microstructures were examined in a cold-rolled high strength steel containing 0.1% C, 0.5% Si, 1.5% Mn, and 0.04% Nb. It was impossible to avoid martensite in the microstructure even though the continuous annealing parameters were controlled. This indicates that the alloying elements such as silicon and manganese contributing to manganese equivalent($Mn_{eq}$) should be reduced to produce the ferrite-pearlite microstructure for the solid solution and precipitation hardened steel. It was found that a decrease in the rapid cooling temperature to $520^{circ}C$ was effective to change the microstructure from ferrite-martensite to ferrite-pearlite-martensite. Typical dual-phase properties exhibiting a low yield ratio and a continuous yielding behavior were obtained when the rapid cooling temperature was in the range of $680^{circ}C$ to $600^{circ}C$. The critical volume fraction of martensite for the typical properties of dual-phase steel was about 11 percent.