The microstructure of a 9Cr-1W-0.22V-0.09Ta-0.11C reduced activation ferritic/martensitic (RAFM) steel has been investigated after thermo-mechanical rolling with subsequent annealing for 30 min at temperatures of 880 °C, 920 °C, 980 °C and 1050 °C, followed by water quenching. Scanning and transmission electron microscopy investigations and electron backscattered diffraction (EBSD) measurements were performed to determine the microstructural features after the different thermal treatments. Additionally, the microstructure and the mechanical properties of the materials were studied after tempering at 750 °C for 2 h. This study aims to understand microstructural processes that occur in the material during thermo-mechanical treatment and to assess the effect of the microstructure on its strength and toughness, with a view on improving its mechanical performance. Microstructural analysis together with the data from mechanical tests identified the beneficial effect of grain refinement obtained with adequate processing on the ductile-to-brittle transition temperature (DBTT) and on the delay of strength degradation at elevated temperatures. •TM-rolling and micro-alloying with V and Ta lead to alternative precipitation state.•TM-rolling reduces precipitation of carbonitrides at grain boundaries.•The precipitation size and distribution can be optimized by appropriate annealing temperature.•TM-rolling and appropriate Q&T lead to a grain refinement of the martensitic structure.•The obtained refined martensite has improved toughness and a lower DBTT.