Friction stir processing (FSP) technology has received reasonable attention in the past two decades to process a wide range of materials such as aluminum, magnesium, titanium, steel, and superalloys. Due to its thermomechanical processing nature, FSP is used to alter grain structure and enhance mechanical and corrosion behavior in a wide range of steels. The refinement in grains and phase transformations achieved in steel after FSP affects hardness, tensile properties, fracture toughness, fatigue crack propagation rate, wear resistance, and corrosion resistance. A number of review papers are available on friction stir welding (FSW) or FSP of nonferrous alloys. In this article, a comprehensive literature review on the FSP/FSW of different types of steels is summarized. Specifically, the influence of friction stir processing parameters such as advancing speed, rotational speed, tool material, etc., on steels’ performance is discussed along with assessment methodologies and recommendations.