Microstructure and fracture behavior of a multi-phase low-density steel were investigated. After hot-rolling and heat treatment, the microstructure of low-density steel was composed of coarse ferrite grains and elongated bands which include second phases such as austenite, martensite and ${kappa}$-carbide depending on holding time during isothermal heat treatment. After tensile test, microcracks were observed at martensite or ${kappa}$-carbide interface in the elongated bands. Coarse ferrite grains showed cleavage fracture behavior regardless of second phase. The cleavage fracture of ferrite could be attributed to their coarse grain size and solute atoms that increase ductile-to-brittle transition temperature of ferrite. Despite of the tendency of cleavage fracture in coarse ferrite grains, a specimen having coarse spheroidized ${kappa}$-carbide particles in the elongated bands showed high total elongation of 30%. Thus, the easiness of plastic deformation in the elongated band seems to play an important role in retardation of cleavage crack formation in coarse ferrite grains.