The transformation behavior and microstructural characteristics of a low carbon high Nb-bearing microalloyed pipeline steel have been investigated by deformation dilatometry and microstructure observation. The continuous cooling transformation curves (CCT) of the tested steel was constructed. High Nb content and deformation enhancing the formation of acicular ferrite; the microstructures are range from PF, QF to AF with increasing cooling rates from 0.5 to 50℃/s and dominated by acicular ferrite in a broadened cooling rate higher than 5℃/s. The chaotic microstructure consists of non-equiaxed ferrite and interwoven ferrite laths distributed high density dislocations and sununits. The results of isothermal holding show that acicular ferrite microstructure is formed in region of 550-600℃. With the holding time or temperature increased, some low misorientations boundaries change to high misotrentationn as dislocations moving and grain boundaries coarsening.