Abstract A novel low cost martensitic based ultra-high strength steel (UHSS) with a tensile strength of 2020 MPa and fracture toughness of 105 MPa m1/2 achieved by nanoscale β-NiAl and M2C precipitates was developed. The strength and toughness of this experimental alloy are comparable to those of the commercially used UHSSs strengthened by only M2C carbides. However, the raw materials cost of this experimental steel is greatly reduced because of low Ni–Co concentration.