Vanadium microalloying additions are common in medium carbon ferrite-pearlite steel shafts. The increased load capacity provided by vanadium carbonitride precipitation is beneficial in many applications. Induction hardening can further increase the surface strength of a component; however, the implications of the vanadium carbonitride precipitates on microstructural evolution during induction hardening are unclear. Evidence that vanadium microalloying influences the microstructural evolution of the induction hardened case as well as the case/core transition regions are presented in the current study. Vanadium increases the amount of non-martensitic transformation products in the case while decreasing austenite formation kinetics in the case/core transition region. Observations in induction-hardened shafts were supported by Gleeble physical simulations of computer simulated thermal profiles. Characterization was conducted using scanning electron microscopy, dilatometry, and microhardness testing.