Abstract This paper is a study of the possibilities created by a relatively new investigative method, the Cellular Automaton technique (CA). This approach is commonly used as a link between various phenomena in the microscopic scale and macroscopic mechanical properties, which makes the cellular automaton technique a very powerful computational tool. This paper is a study of application of the CA technique for modeling of dynamic recrystallization (DRX). In this particular work a CA model, based on the evolution of dislocation densities during hot deformation processes is used for modeling a complex dynamic recrystallization behavior. This analysis addresses flow stress properties and microstructure development. Results obtained from identification of the parameters in the internal variable model IVM were combined with the cellular automaton technique. Based on the knowledge supplied by the combination of those two computational techniques, various simulations such as calculation of the microstructure evolution, flow stress behavior and kinetics of dynamic recrystallization were performed.