Ductile fracture was studied in U-notched, bend specimens of spheroidized AISI 1095 steel. The role of microstructure in void initiation and growth was investigated. The stress and strain states were controlled by varying the acuity of the notch and the bending load. Preferential sites for void formation were found to range from the sharp corners of inclusions to two closely spaced carbide particles. Voids formed preferentially along characteristic slip lines, indicating an important role of plastic instability in ductile frac-ture. The results are compared to those of previous studies and discussed in terms of the mechanism of fracture.