It is found that the low-temperature decomposition of martensite in quenched medium-carbon steel occurs in two stages. In the first stage, the rate of decomposition is higher than that in the subsequent stage. Application of the neutron diffraction method allows the identification of two stages of transformation in the first stage of martensite decomposition. It is shown that the first stage is associated predominantly with carbon segregation at dislocations, and the second, with the outdiffusion of carbon from the supersaturated solid solution with the formation of dispersed particles of metastable carbides. It is shown that the change in the concentration of carbon and, accordingly, the degree of tetragonal lattice of martensite at aging and low tempering occurs to a certain limit, independent of the cooling rate during quenching and tempering temperature. This is due to the establishment of a relative equilibrium between a supersaturated solid solution and fine particles of metastable iron carbide. It is found that the determining process, which leads to a change in the microhardness the low-temperature decomposition, is the out diffusion of carbon from the supersaturated solid solution.