The recrystallization of powder metallurgy superalloy FGH96 undergoes three characteristic periods, viz., incubation, nucleation and growth period. The recrystallization behavior is sensitive to annealing temperature. When the temperature is 1050℃, there is lots of nucleation at the previous particle boundaries. The nucleation grow up and the fine equiaxed grains are obtained when the temperature is 1080℃. However, the equiaxed grains would be significantly getting coarse when the temperature is1110℃. Recrystallization usually takes place at previous particle boundaries during hot deformation process. When the deformation is not enough, a typically incomplete recrystallization microstructure, named the necklace microstructure, will be obtained. The necklace microstructure has fine equiaxed grains inlayed in non-equiaxed coarse grains surronding. Meanwhile, it is also the intermediate microstructure during the refinement processing of the PM materials. Both the severe total deformation and multiple deformation direction are favorable for grain refinement.