It is commonly known that precipitation of secondary phase in non-ferrous alloys will affect the mechanical properties of them. But due to the nature of dual-phase low-alloy high-carbon steel and its high potential of precipitation of cementite, there is limited study on tailoring the mechanical and corrosion properties of this grade of steel by controlling the precipitation of different phases. Predicting and controlling precipitation behaviour on this grade of steel is of great importance towards producing more advanced applications using this low-cost alloy. In this study the new concept of selective-precipitation process for controlling the mechanical and corrosion behaviour of dual-phase low-alloy high-carbon steel has been introduced. We have investigated the precipitation of different phases using in-situ observation ultra-high temperature confocal scanning laser microscopy, image analyser - ImageJ, scanning electron microscopy with energy dispersive spectroscopy (SEM/EDS) and electron probe microanalysis (EPMA). Volume fraction of each phase including retained austenite, martensite and precipitated phases was determined by X-ray diffraction (XRD), electrochemical corrosion test by Tafel extrapolation method and hardness performance by nanoindentation hardness measurement. The experimental results demonstrated that, by controlling the precipitations inside the matrix and at grain boundaries through heat treatment, we can increase the hardness of steel from 7.81 GPa to 11.4 GPa. Also, corrosion resistance of steel at different condition has been investigated. This new approach will open new possibility of using this low-cost steel for high performance applications.