The effect of heat treatment on mechanical properties of 0.4C-2.3Si(wt%) steel with bainitic ferrite matrix were investigated. This steel has been synthesized intergrating concepts from TRIP(Transformation Induced Plasticity) steel & Austempered Ductile Cast Iron(ADI) technology. The low alloy medium carbon (0.4 %C) steel with high silicon (2.3 %Si) was initially annealed for 60 min at $800^{circ}C$, $820^{circ}C$ and $840^{circ}C$ respectively in the intercritical region and then subsequently austempered at various temperatures at $260^{circ}C$, $320^{circ}C$ and $380^{circ}C$ for 30 min in a salt bath. The mechanical properties were measured by using a tensile test. A detailed study of the microstructure of this steel after heat treatment was carried out by means of electron back scattering diffraction (EBSD) technic. In this study, a new low alloy steel with high strength (780~1,050MPa) and exceptionally high ductility (20~40%) was obtained.