In view of the limited material resources and energy supply available together with serious environment impact concerns at the present time, the development of ultra-high strength steels has attracted a great deal of attentions from various countries in the world. As we know, most traditional high strength steels have been developed based on martensitic and bainitic structures with high levels of carbon or high alloy additions. However, these alloys are facing many severe problems, including poor weldabi!ity, low ductility and toughness, fabrication-size limitation, as well as high production cost, all of these resulting in slowdown of the economic and national-defense developments in China. Thus, it is imperative for us to speed up the development of advanced ultra-high strength steels with excellent mechanical and metallurgical properties as well as the low manufacturing cost. In this paper, we present a comprehensive review of the recent development of high-strength ferritic steels hardened by precipitation of nano-scale precipitates. In this paper, we have evaluated all potential hardening mechanisms possibly applied to ferritic steels. Furthermore, the scientific and technical challenges facing this new class of high-strength and low-cost steels will be briefly discussed.