The effects of titanium inclusions on magnetic properties of non-oriented electrical steel sheets were investigated. The magnetic induction and core loss of test specimens deteriorated as the titanium content increased. Electron microscopic study revealed that the deterioration was classified into two types : one was caused in the steels containing <0.016 wt % titanium by the "pinning effects" of titanium carbonitrides on the recrystallization of cold-rolled sheets, and the other occurred in the steels containing >0.016 wt % titanium by numerous (Fe, TI)P precipitates in both grains and grain boundaries.