The effect of solute drag on recovery and recrystallization during hot deformation of Nb microalloyed steels has been modeled using a newly developed microstructure model. The model is based on dislocation theory and the calculated dislocation density determines the driving force for recrystallization. Subgrains act as nuclei for recrystallization and have to reach a critical size and configuration in order for recrystallization to start. In the model, the solute drag effect of Nb in solution is described. Nb retards both dislocation and grain boundary movement giving retardation in both recovery and recrystallization. Calculations were compared to experimental results from axisymmetric compression tests combined with stress relaxation. In order to model the effect of solute drag, the experiments were carried out at temperatures where precipitation of Nb(C, N) should not occur. The calculated flow stresses for the compression tests show good fit with experimental data. Also, the calculated results of the relaxation tests show good agreement with experimental data.