This chapter describes the iron-carbon phase diagram, its modification by alloying elements, and the effect of carbon on the chemistry and crystallography of austenite, ferrite, and cementite found in Fe-C alloys and steels. It also lays the groundwork for understanding important metallurgical concepts, including solubility, critical temperature, dislocation defects, slip, and diffusion, and how they affect the microstructure, properties, and behaviors of steel.