Surface and subsurface microstructural characterization after machining operations is a topic of great interest for both academic and industrial research activities. This paper presents a newly developed finite element (FE) model able to describe microstructural evolution and dynamic recrystallization (DRX) during orthogonal hard machining of SAE 8620 steel. In particular, it predicts grain size and hardness variation by implementing a user subroutine involving a hardness-based flow stress and empirical models. The model is validated by comparing its output with the experimental results available in literature at varying the cutting speed, insert geometry and flank wear. The results show a good ability of the customized model to predict the thermo-mechanical and microstructural phenomena taking place during the selected processes.