A novel medium manganese (MMn) steel with additions of Cr (18%), Ni (5%), V (1%), and N (0.3%) was developed in order to provide an enhanced corrosion resistance along with a superior strength–ductility balance. The laboratory melted ingots were hot rolled, cold rolled, and finally annealed at 1000 °C for 3 min. The recrystallized single-phase austenitic microstructure consisted of ultrafine grains (~1.3 µm) with a substantial amount of Cr- and V-based precipitates in a bimodal particle size distribution (100–400 nm and <20 nm). The properties of the newly developed austenitic MMn steel X20CrNiMnVN18-5-10 were compared with the standard austenitic stainless steel X5CrNi18-8 and with the austenitic twinning-induced plasticity (TWIP) steel X60MnAl17-1. With a total elongation of 45%, the MMn steel showed an increase in yield strength by 300 MPa and in tensile strength by 150 MPa in comparison to both benchmark steels. No deformation twins were observed even after fracture for the MMn steel, which emphasizes the role of the grain size and precipitation-induced change in the austenite stability in controlling the deformation mechanism. The potentio-dynamic polarization measurements in 5% NaCl revealed a very low current density value of 7.2 × 10⁻⁴ mA/cm² compared to that of TWIP steel X60MnAl17-1 of 8.2 × 10⁻³ mA/cm², but it was relatively higher than that of stainless steel X5CrNi18-8 of 2.0 × 10⁻⁴ mA/cm². This work demonstrates that the enhanced mechanical properties of the developed MMn steel are tailored by maintaining an ultrafine grain microstructure with a significant amount of nanoprecipitates, while the high corrosion resistance in 5% NaCl solution is attributed to the high Cr and N contents as well as to the ultrafine grain size.