The microstructural evolution of pearlite during severe cold rolling in Fe-0.8C binary alloy and Fe-1Mn-0.8C ternary alloys was investigated by using SEM, TEM and XRD etc. The results show that the deformed pearlite consists of irregularly bent lamella, coarse lamella with shear-band and fine lamella. As the rolling reduction increases, the proportion of fine lamella increases. The strong plastic deformation, amorphization and dissolution of cementite take place during the severe cold rolling. The maximum carbon content in ferrite reaches 0.15 mass% after 90% cold rolling.