Interstitial-free (IF) steels are widely used for car body material. However, a few types of streaky mark defect are commonly found on hot dip galvannealed (GA) IF steel sheets. In the present study, both the phase structure of a streaky mark defect and the microstructure of the substrate just below it were characterized by optical microscopy (OM) and scanning electron microscopy (SEM). It was found that the bright streaky mark area was composed of ${delta}$ phase while the dark normal area was full of craters. More than half of the grains at the uppermost surface of the substrate just below the streaky mark defect are unrecrystallized grains which could result from lower finish rolling temperature during hot rolling and be kept stable during the annealing process, while almost all the grains in the normal area are equiaxed grains. In order to confirm the effect of the unrecrystallized grains on the coating morphology, hot dip galvannealing simulation experiments were carried out in IWATANI HDPS. It is proved that the unrecrystallized grains accelerate the Fe-Zn reaction rate during galvannealing and result in a flatter coating surface and an even coating thickness. Finally, a formation mechanism of the streaky mark defect on the hot dip galvannealed IF steel sheet was discussed.