Three different microstructures, namely ferrite–pearlite, tempered martensite and ferrite–bainite–martensite of 38MnSiVS5 microalloyed steel, were produced using controlled thermomechanical processing. The properties are comparable to quenched and tempered steel. The developed microstructures were turned to evaluate their machinability. Mixed modes of response were observed while ferrite–bainite–martensite microstructure exhibits better machinability by way of good surface texture/finish, the ferrite–pearlite microstructure of least strength encounters smaller cutting force.