This work explains the occurrence of transformation-induced plasticity via stress-assisted martensite, when designing ultrafine-grained duplex steels. It is found that, when the austenite is reduced to a fine scale of about 300nm, the initial deformation-induced microstructure can be dominated by parallel lamellae of ε martensite or mechanical twinning, which cannot efficiently provide nucleation sites for strain-induced martensite. Hence, α′ martensite nucleation occurs independently by a stress-assisted process that enhances transformation-induced plasticity in ultrafine-grained austenite. This metallurgical principle was validated experimentally by using a combination of transmission Kikuchi diffraction mapping, transmission electron microscopy and atom probe microscopy, and demonstrated theoretically by the thermodynamics model of stress-assisted martensite.