In this study the hydraulic free bulge test with an internal pressure boosting velocities of 0.5 MPa/s and punch feeding speed of 0.2 mm/s was carried out to study the microstructure evolution of the transformation induced plasticity seamless steel tube in the hydroforming process. The microstructure of the selected parts of the tube after the hydraulic free bulge test were investigated with the optical microscope and transmission electron microscope. The transformation rate of the retained austenite to martensite of the selected parts were determined by the x‐ray diffraction. To study the deformation behavior and obtain the stress‐strain state of the tube, the finite element simulation of the hydraulic free bulge test was also carried out. The results show that the retained austenite in the microstructure of all the selected parts transformed to martensite after the hydraulic free bulge test. In the center part of the tube, the highest transformation rate of 82.84 % was obtained. The retained austenites distribute inside of the ferrite grains transform to martensite firstly under the compressive stress and strain state. The retained austenites distribute at the ferrite grain boundaries start to transforme into martensite when the tube is subjected to the tensile stress and strain.