Microstructural changes and their relations to mechanical properties in drawn dual-phase steels were investigated by performing tensile tests and microstructural examination with scanning electron microscopy. In this investigation, the primary focus was on deformation behavior of martensite particles aligned transverse to the drawing axis. Unlike martensite particles aligned nearly parallel to the drawing axis that are thinned to a fibrous shape, those aligned transverse to the drawing axis are severely bent, and even fractured with increasing drawing strain. In addition, the realignment of martensite particles to the drawing axis is directly related to the occurrence of a maximum peak in RA, of an inflection point in tensile strength and of a sharp drop in work hardening rate. The variation of mechanical properties of reduction in area, tensile strength and work hardening rate with drawing strain is discussed in conjunction with microstructural changes during the drawing.