The influences of austenitizing conditions on the microstructure of AISI M42 high-speed steel were investigated through thermodynamic calculation, microstructural analysis, and in-situ observation by a confocal scanning laser microscope (CSLM). Results show that the network morphology of carbides could not dissolve completely and distribute equably in the case of the austenitizing temperature is 1373 K. When the austenitizing temperature reaches 1473 K, the excessive increase in temperature leads to increase in carbide dissolution, higher dissolved alloying element contents, and unwanted grain growth. Thus, 1453 K is confirmed as the best austenitizing condition on temperature for the steel. In addition, variations on the microstructure and hardness of the steel are not obvious when holding time ranges from 15 to 30 min with the austenitizing temperature of 1453 K. However, when the holding time reaches 45 min, the average size of carbides tends to increase because of Ostwald ripening. Furthermore, the value of M_s and M_f decrease with the increase of cooling rate. Hence, high cooling rate can depress the martensitic transformation and increase the content of retained austenite. As a result, the hardness of the steel is the best (65.6 HRc) when the austenitizing temperature reaches 1453 K and is held for 30 min.