The purpose of this study was to analyze microstructural changes and evaluate the mechanical properties of TWIP steel subjected to variations in heat treatment, in order to identify optimal process conditions for enhancing the performance of TWIP steel. For this purpose, a homogenization heat treatment was conducted at 1,200 °C for 2 h, followed by hot rolling at temperature exceeding 1,100 °C and cold rolling. Annealing heat treatment is achieved using a muffle furnace in the range of 600 °C to 1,000 °C. The microstructure characterization was performed with an optical microscope and X-ray diffraction. Mechanical properties are evaluated using micro Vickers hardness, tensile test, and ECO index (UTS × Elongation). The specimens annealed at 900 °C and 1,000 °C experienced a significant decrease in hardness and strength due to decarburization. Consequently, the decarburization phenomenon is closely related to the heat treatment process and mechanical properties of TWIP steel, and the effect of the microstructure change during annealing heat treatment.