EH36 offshore engineering steels with varied yttrium-based rare earth content were prepared by trials in industrial production. The effects of yttrium-based rare earth on the inclusions and cryogenic temperature impact properties of EH36 offshore engineering steel were investigated by scanning electron microscopy, automatic statistics of inclusions, thermodynamic analysis and fracture morphology analysis. Yttrium-based rare earth could refine the inclusions and modify irregular Al₂O₃ and MnS inclusions into small, spherical, regular rare earth inclusions. The optimal impact properties were found in EH36 steel with 0.020 wt.% yttrium-based rare earth. Compared with 0RE steel, the RE-inclusions were within 3 μm (91.95% of total inclusions) in diameter and were spherical or quasi-spherical when dispersed in 200RE steel. Meanwhile, the cryogenic temperature impact properties significantly increased: 200RE steel impact properties were increased by 245.1% at −80 °C.