Recent progress in the understanding of the deformation-induced martensitic transformation, the transformation-induced plasticity (TRIP) effect, and the reversion annealing in the metastable austenitic stainless steels are reviewed in the present work. For this purpose, the introduced methods for the measurement of martensite content are summarized. Moreover, the austenite stability as the key factor for controlling the austenite to martensite transformation is critically discussed. This is realized by analyzing the effects of chemical composition, initial grain size, applied strain, deformation temperature, strain rate, and deformation mode (stress state). For instance, the effect of initial grain size is found to be complicated, especially in the ultrafine grained (UFG) regime. Furthermore, it seems that there is a critical grain size for changing the trend of α′-martensite formation. Decreasing the deformation temperature motivates the formation of α′-martensite, but there is a critical temperature for achieving the maximum tensile ductility. Afterwards, the modeling techniques for the transformation kinetics and the contribution of deformation-induced martensitic transformation to the strengthening of material and also strength-ductility trade-off are critically surveyed. The processing of UFG microstructure during reversion annealing, the effects of the recrystallization of the retained austenite, the martensitic shear and diffusional reversion mechanisms, and the annealing-induced martensitic transformation are also summarized. Accordingly, this overview presents the opportunities that the strain-induced martensitic transformation can offer for controlling the microstructure and mechanical properties of metastable austenitic stainless steels.