This work presents new experimental investigation on the microstructural changes that occur during micro-scale laser melting of steel. Significant prior work has focused on the effect of larger-scale laser polishing and solid-state laser hardening on the properties and microstructure of steel, but because of the much smaller heated volume and shorter time scale in micro-scale laser polishing, assumptions used in that body of work are brought into question. Preliminary microstructure observation and nanoindentation indicate a hard martensitic layer. X-ray diffraction indicates the presence of retained austenite that has not yet been directly observed in the microstructure. The morphology and significance of this retained austenite is also under ongoing investigation.