Microstructure evolution during tempering of quenched steel was studied via dilatometric experiments. Temperature ranges of transformation were determined by a relative dilation curve. The thermal expansion coefficient of quenched steel was defined as a function of temperature. The transformation expansion is determined by subtracting thermal expansion from a measured diameter dilation curve. A kinetic equation based on tempering parameter was proposed to predict the microstructure evolution fraction of martensite and bainite of Ni3.5CrMoV and C45 steel. The kinetic equation was used in an in-house FEM code. The internal stress evolution of a quenched generator rotor was investigated. Microstructure evolution during tempering of quenched steel was studied via dilatometric experiments. Temperature ranges of transformation were determined by a relative dilation curve. The thermal expansion coefficient of quenched steel was defined as a function of temperature. A kinetic equation based on tempering parameter was proposed to predict the microstructure evolution fraction of martensite and bainite of Ni3.5CrMoV and C45 steel. The kinetic equation was used in an in-house FEM code. The internal stress evolution of a quenched generator rotor was investigated.