The orientation distribution of ferrite grains formed by dynamic and static transformation was examined using the electron backscattered diffraction technique. The orientation of ferrite grains, transformed both dynamically and statically from deformed austenite, showed a large deviation from the Kurdjumov-Sachs (K-S) orientation relationship. The deformed austenite grain structure modeled using Ni-30Fe alloy showed inhomogeneous and localized deformations within the austenite grains. A large orientation variation was observed across this localized deformation zone, and the large deviation of the ferrite orientation from the K-S relationship was attributed to the nucleation of ferrite from this localized deformation region.