Dual phase steels are versatile advanced high strength steels that are being used for sheet metal applications in automotive industry. It also has the potential for application in bulk components like gear. The inter-critical annealing in dual phase steels is one of the crucial steps that determine the mechanical properties of the material. Selection of the process parameters for inter-critical annealing, in particular, the inter-critical annealing temperature and time is important as it plays a major role in determining the volume fractions of ferrite and martensite, which in turn determines the mechanical properties. Selection of these process parameters to obtain a particular required mechanical property requires large number of experimental trials. Simulation of microstructure evolution and virtual compression/tensile testing can help in reducing the number of such experimental trials. In the present work, phase field modeling implemented in the commercial software Micress® is used to predict the microstructure evolution during inter-critical annealing. Virtual compression tests are performed on the simulated microstructure using finite element method implemented in the commercial software, to obtain the effective flow curve of the macroscopic material. The flow curves obtained by simulation are experimentally validated with physical simulation in Gleeble® and compared with that obtained using linear rule of mixture. The methodology could be used in determining the inter-critical annealing process parameters required for achieving a particular flow curve. © Published under licence by IOP Publishing Ltd.