The austempering transformation behavior in Fe-0.7wt.%C-2.3wt.%Si-0.3wt.%Mn steel is investigated. Each specimen was austenitized for 60 min at $900^{circ}C$, and austempered at $380^{circ}C$ for different time periods varying from 2 min to 256 min. After the austempering heat treatment, the Stage I and II evolutions are performed using optical metallography, X-ray diffraction and image analyses. Variations in the X-ray diffraction patterns and lattice parameters of the ferrite and austenite demonstrate that the residual austenite decomposes into ferrite and carbide during the Stage II evolution; moreover the amount of ferrite increases during the Stage I evolution. While the amount of austenite increases during Stage I, it dicreases during Stage II. Overall, the variations in the volume fractions of the microstructure and carbide formation in stages I and II meet high temperature austempering reaction of the ausferrite microstructure.