Deformation band localization modes, uniform tensile strength, and uniform elongation of Ferrite-Martensite Dual-Phase (DP) steels are analyzed by finite element (FE) study. Treating the microstructure inhomogeneity as the sole cause of imperfection, failure initiation is predicted as the natural fallout of plasticinstability caused by load drop because of localized plastic strain in the Representative Volume Element (RVE) during straining. Strain partitioning between two phases (ferrite matrix and martensite island) are investigated onRVEs, and it reveals that the increase of martensite yield stress decreases the plastic deformation and increases the stress state in martensite. Whereas, a decrease in martensite island volume fraction (Vm) results in the reduction of plastic deformation and stress state in the island. Studies are then carried out to investigate the effects of the ferrite-martensite flow properties and martensite volume fraction on the macroscopic tensile deformation behavior and band localization of DP steels. Micromechanical based FE simulation resultsemphasize that an increase in initial yield strength and volume fraction of martensite increases the ultimate tensile stress (UTS) with the decrease in uniform elongation. Similarly, as the hardening rate of ferrite increases,it increases the ultimate tensile stress (UTS) and uniform elongation. Additionally, deformation band localization modes alter from inclined to perpendicular to the loading axis with an increase in martensite volume fraction and initial yield strength of martensite. The knowledge of this work can be used to design DP steels with desired mechanical properties.