This paper analyzes the consequences of the microstructural changes in a quenchable steel component subjected to grinding. The model takes into account the coupling of the temperature history and stress field in the grinding, where the temperature field is assessed by Jager's model and the stress field is analyzed by means of an embossed grid method. The effects of the dislocation density and grain size distribution are also examined. The transformation kinetics of martensite, bainite and ferrite is then discussed based on the Cahn's law. It was found that that the temperature-stress field varies significantly in different subsurface parts of the component and thus creates a variable structure across its depth. The theoretical results are in good agreement with experimental data.