The evolution of microstructure with degree of deformation in a deformed wedge shaped hypereutectoid steel implement, containing 1.84 C, 0.06 Si, 0.01 S, 0.14 P, 0.11 Cu, 0.017 Zr and 0.05 Ce, has been characterized using optical and scanning electron microscopy (SEM) and electron back scattered diffraction (EBSD). Microstructures consisted of bulky carbides dispersed in a matrix of pearlitic, with grain boundary proeutectoid cementite, side plate Widmanstatten cementite and intragranular cementite were noted in region of low strain. The cast structure was broken down with increasing degree of deformation. The mechanism for the formation of spheroidization of cementite in hypereutectoid steel has been proposed. Microstructural analysis of high strain region consists of fine equiaxed ferrite grains surrounded by high angle boundaries.