This study presents the novel processing technique known as continuous casting‐heat treatment processes to produce Austempered Ductile Iron (ADI) which is a new class of ductile iron. ADI is characterized by improved mechanical properties but has low machinability as compared to other cast irons and steel of similar strength. The novel technique is developed by the integration of casting (in die casting) and heat treatment processes in foundry to save cost energy and time. Specimens just after casting were austenitized at 930° C for 90 min and then austempered in fluidized bed at 380° C for 90 and 120 min. Hence, the effect of austempering time on the morphology of retained austenite and mechanical properties of the material were examined and compared with conventionally produced ADI. Drilling tests were then carried out to evaluate the machinability of ADI in terms of cutting forces, chip micro‐hardness, chip morphology and surface roughness. The mechanical properties of ADI austempered for 120 min have found to be better as compare to the ADI austempered for 90 min.