Nowadays, the use of ultra high strength steels has been used extensively in the country’ s sensitive and strategic industries such as defense, nuclear, aerospace and automotive industries due to it’ s high special strength (strength to weight ratio). Among the ultra high strength steels, the use of ultra high medium carbon low alloy steels in sensitive structures such as pressure vessels, solid fuel rocket motor shell, some component of pumps, landing gear, gears and fittings are expanding because of their advantages such as weldability and proper formability, relatively low production costs and easy accessibility. The most important limitations of these steels are elongation, impact energy and low fracture toughness in yield strength higher than 1300MPa. Lower bainite/martensite two phase microstructures have the ability to simultaneously combine strength and high elongation in these steels. Therefore, in the present study, the microstructural evolution of low temperature austempering heat treatment on tensile mechanical properties and impact energy of AISI 4340 steel sheet has been investigated. After evaluation and analysis parameters such as microstructural evolutions, tensile mechanical properties and impact energy of heat treated samples, the sample with 30 minutes transformation time, due to the mixed structure of martensite and lower bainite and having the yield strength, ultimate tensile strength, elongation, impact energy and calculated fracture toughness, 1380MPa, 1490MPa, 12. 5%, 52J and 118MPa√ m respectively, was selected as the optimum sample in terms of mechanical properties and fracture toughness.