The lattice parameters of both the product phase and the matrix phase have determined using in situ X-ray and neutron diffraction measurements during forward and reverse transformations in steels. The lattice parameters are well known to be influenced by various factors, including temperature, internal stresses induced by transformation strains, partitioning of alloying elements, crystal defects, and magnetic strains. Therefore, it is crucial to accurately disentangle the contributions of these factors to the observed changes in lattice parameters. This review examines the evaluation of internal strain (stress) associated with ferrite, pearlite, bainite, martensite, and reverse austenite transformations, with a particular emphasis on the distinction between diffusional and displacive transformations. Additionally, the effects of plastic deformation of austenite on the bainite or martensite transformation are discussed. In this context, the roles of dislocations and vacancies are highlighted as key areas for further investigation.