This paper focuses on the effect of gear steel on distortion due to phase transformation in carburizing and quenching. The carburizing and quenching process of C-rings under suspension was studied by using the finite element method based on the thermo-mechanical theory, considering phase transformation. The phase transformation kinetics parameters, depending on different carbon contents, were measured by Gleeble-3500. The distortion behavior of the carburized C-ring during the cooling stage was analyzed, as well as the carbon concentration distribution and martensite volume fractions. The accuracy of the simulation was also verified by comparing the experimental data with the simulated result of the distortion and microstructure. A reliable basis is provided for predicting the distortion mechanism of gear steels in carburizing and quenching.