The development and identification of the complex microscale austenite to ferrite transformation model during continuous cooling based on the Cellular Automata method and DigiCore library is the main goal of the work. The model is designed to predict phase transformation from a fully austenitic range and involves nucleation of ferrite grains with their further growth. The major driving force for the CA grain growth is based on the carbon concentration differences across the microstructure. The model parameters are identified with the inverse analysis method with the goal function defined on the basis of the dilatometric investigation. The basic assumption of the developed model, experimental procedure, as well as subsequent identification stages, are presented within the work.