The microstructural characteristics of melt-spun and heat-treated austenitic Fe−28Mn−8.6Al−0.5Mo−0.7W−0.5Nb−1.1C (in wt. %) alloys have been investigated by means of transmission electron microscopy. The melt-spun alloy contained fine austenitic cells and some intercelluar Nb(C, N) precipitates. Detailed observations revealed fine {100} modulations in the matrix of the cells, as well as a concomitant L′I2 atomic ordering arising from it. These observations indicate that the onset of decomposition of the initial austenite phase occurred during the rapid solidification process. Aging of the melt-spun alloy at 823–1173 K produced various microstructures, including a general precipitation of Nb(C, N) in the matrix. On isochronal annealing for 1 h, this matrix Nb(C, N) precipitation commenced at 1073 K with the formation of metastable coherent K-carbide (K′) near cell boundaries. On annealing at temperatures above 1123 K, only the Nb(C, N) precipitates were formed, on a fine scale, being accompanied by the formation of precipitate-free regions in the vicinity of cell and grain boundaries. Both intercellular and matrix Nb(C, N) precipitates obeyed a cube-to-cube orientation relationship with austenite. The general matrix precipitation of Nb(C, N) and formation of precipitate-free regions are discussed in terms of a vacancy (defect)-depletion effect. Finally, it was demonstrated that, by employing a double heat-treatment schedule of annealing at 1173 K followed by aging at 823 K, a novel microstructure consisting of fine dispersoids of Nb(C, N) carbo-nitride, distributed over the matrix of {100} modulated structure, could be produced.