The post-dynamic transformation that takes place during the subsequent isothermal holding for the case when dynamic strain-induced transformation (DSIT) from austenite to ferrite occurs during hot deformation is investigated by cellular automaton modeling. The simulation provides a better understanding of carbon diffusion in retained austenite and the resulting microstructure evolution during the post-dynamic transformation. The predictions reveal that continuing transformation from retained austenite to ferrite and the reverse transformation can occur simultaneously in the same microstructure during post-deformation isothermal holding owing to the locally acting chemical equilibrium conditions. Competition between forward and reverse transformation exists during the early stage of post-dynamic heat treatment. It is also revealed that increasing the final strain of DSIT might promote the reverse transformation, whereas the continuous austenite-to-ferrite transformation yields a diminishing effect. The influence of the DSIT final strain on the grain size of ferrite and the characteristics of the resultant microstructure is also discussed.