In this paper, the effects of different tempering temperatures on a recently developed ultrahigh-strength steel with 0.4 wt.% carbon content were studied. The steel is designed to be used in press-hardening for different wear applications, which require high surface hardness (650 HV/58 HRC). Hot-rolled steel sheet from a hot strip mill was austenitized, water quenched and subjected to 2-h tempering at different temperatures ranging from 150 °C to 400 °C. Mechanical properties, microstructure, dislocation densities, and fracture surfaces of the steels were characterized. Tensile strength greater than 2200 MPa and hardness above 650 HV/58 HRC were measured for the as-quenched variant. Tempering decreased the tensile strength and hardness, but yield strength increased with low-temperature tempering (150 °C and 200 °C). Charpy-V impact toughness improved with low-temperature tempering, but tempered martensite embrittlement at 300 °C and 400 °C decreased the impact toughness at −40 °C. Dislocation densities as estimated using X-ray diffraction showed a linear decrease with increasing tempering temperature. Retained austenite was present in the water quenched and low-temperature tempered samples, but no retained austenite was found in samples subjected to tempering at 300 °C or higher. The substantial changes in the microstructure of the steels caused by the tempering are discussed.