Abstract: With electron microscopy the investigation on isothermal martensite transformation in an Fe20.5Ni-4.8Mn alloy has been carried out to clarify the effect of austenite state on the transformation, by applying pre-deformation to austenite before isothermal holding. Under the condition without pre-deformation, the isothermal martensite products are lath martensite with {111}fhabit planes. Dislocations in austenite seem to contribute to nucleation of martensite, and in this nascent Stage austenite substructure has no obvious effect on martensite growth. The consequent thickening of martensite laths is apparently influenced by local austenite states, resulting in the changes in orientation, morphology as well as substructure of martensite lath. The kinetics of isothermal martensite transformation is controlled by intedece dislocation determined nucleation of martensite in primary stage, but to a larger extent, by the austenite accommodation for the shape strain of martensite in the thickening Stage