A microalloyed (MA) steel, combined with titanium diboride (TiB2), was utilised to create a unique steel matrix composite (SMC), enhancing the modulus of the MA steel while also improving its strength. Through thermomechanical processing stages, including hot rolling and plane-strain compression (PSC) testing, followed by various final cooling methods, a cooling rate of 0.1 °C/s was identified as the most effective for achieving a ferrite–pearlite microstructure, which is suitable for toughness and ductility. With TiB2 reinforcement successfully incorporated via Fe-Ti and Fe-B additions during vacuum induction melting (VIM), it was observed that the TiB2 particles were homogeneously dispersed in both 5% and 7.5% nominal volume fraction additions, exhibiting faceted and hexagonal morphology. TiB2 was found to exert a grain-pinning effect on recrystallised austenite at 1050 °C, as evidenced by the retention of grain orientation from hot rolling, in contrast to the MA steel deformed without the composite reinforcement. Increasing the volume fraction of TiB2 improved the stiffness and strength of both composite alloys, verified through mechanical testing.