This work aims to elucidate the microstructure characteristics of each phase in carbidic austempered ductile iron and the nucleation and growth of acicular ferrite in an austempering temperature range of 250-450 degrees C. The research results showed that the carbides (Fe, Cr)(3)C obtained by the eutectic reaction had high indentation hardness and indentation modulus, and the interface between acicular ferrite and eutectic carbides belonged to incoherent boundary. Since the nucleation driving force of acicular ferrite increased with an increase in temperature difference (Delta T), the size of acicular ferrite gradually decreased with the decrease in isothermal temperature. When the austempering temperature was above 400 degrees C, acicular ferrite preferentially nucleated around the graphite nodules and inside grains. However, acicular ferrite preferentially nucleated around the graphite nodules and the eutectic carbides at temperature below 400 degrees C. Additionally, a fine twin structure had been found inside some acicular ferrite after austempering at a low temperature (250 degrees C).