The effects of cold work and low-temperature sensitization heat treatment of non-sensitized austenitic stainless steels have been investigated and related to the cracking in nuclear power reactors. Types 304, 304L and 304LN developed martensite after 15% cold working. Heat treatment of these cold worked steels at 500 °C led to sensitization of grain boundaries and the matrix and a desensitization effect was seen in 11 days due to fast diffusion rate of chromium in martensite. Types 316L and 316LN did not develop martensite upon cold rolling due to its chemical composition suppressing the martensite transformation (due to deformation) temperature, hence these were not sensitized at 500 °C. The sensitization of the martensite phase was always accompanied by a hump in the reactivation current peak in the double loop electrochemical potentiokinetic reactivation test, thus providing a test to detect such sensitization. It was shown that bending does not produce martensite and therefore, is a better method to simulate weld heat affected zone. Bending and heating at 500 °C for 11 days led to fresh precipitation due to increased retained strain and desensitization of 304LN due to faster diffusion rate of chromium along dislocations. The as received or solution annealed 304 and 304LN with 0.15% nitrogen showed increased sensitization after heat treatment at 500 °C, indicating the presence of carbides/nitrides.