The problems of detecting the distribution of small amounts (5 pct or less) of retained austenite films around the martensite in quenched and tempered experimental medium carbon Fe/c/x steels are discussed and electron optical methods of analysis are emphasized. These retained austenite films if stable seem to be beneficial to fracture toughness. It has been found that thermal instability of retained austenite on tempering produces an embrittlement due to its decomposition to interlath films of M3C carbides. The fractures are thus intergranular with respect to martensite but transgranular with respect to the prior austenite. The temperature at which this occurs depends upon alloy content. The effect is not found in Fe/Mo/C for which no retained austenite is detected after quenching, but is present in all other alloys investigated.