Experimental steels similar in composition to structural grades were prepared from weld metal deposits to study the formation of acicular ferrite under conditions experienced in the heat affected zone for a range of welding processes. The formation of acicular ferrite under these conditions is found to be dependent on the presence of a suitable distribution of oxide inclusions > 0·4 μm in size. The characteristics and proportion of acicular ferrite in the microstructure also depend on the prior austenite grain size and cooling rate. The relationship between these factors is presented in a simplified quantitative model, which is supported by data from limited welding trials. Metallographic observations suggest that acicular ferrite forms in two stages. The first involves the formation of relatively large primary acicular ferrite plates by multiple nucleation at intragranular inclusion sites, and the second involves the formation of many smaller acicular ferrite grains that grow sympathetically from the primary plates.