New austempered ductile cast iron precipitated ferrite around the spheroidal graphite was produced by a modified heat treatment. The process involved austempering at 350°C for 5-30 min after furnace cooling to 700-730°C from an austenitizing temperature of 900°C for 60 min (α/M-ADI). In this process, a mixture structure of 5-20% ferrite around the graphite with ausferrite was obtained. The results show that the elongation and Charpy impact toughness of α/M-ADI with less 10% of ferrite was increased remarkably. While the tensile strength and 0.2% yield strength of α/M-ADI were at the same value level of the conventional ADI.