Development of low?sulfur and Pb?free free cutting steel is significant because the use of S or Pb free?cutting steel can result in serious pollution.The hypoeutectoid graphitized free cutting steel was proposed. The graphitization is difficult due to slow graphitization process,so it is crucial to accelerate the graphitization process. The composition design was based on the principle of increasing the number of graphite nucleus. The machinability of developed steel is improved by taking advantage of notch effect and lubrication action of dispersed fine graphite particles.