The main objective of the present work is to study the nickel steels rolling process and investigate the causes of scaling and distortion problem occurring in hot rolled nickel steel plates as produced by the peoples steel mill. For this purpose the study concerned with causes of scaling and distortion were investigated during the steel processing at Peoples Steel Mills and its effect on microstructure and mechanical properties were also investigated. Tensile and hardness test were carried out to determine tensile strength, yield strength, % elongation, hardness of the rolled plates using universal tensile machine and Brinell hardness testing machine. The metallographic investigation was also carried out to investing the effect of heat treatment on micro-structural constituents in water quenched and tempered nickel steel plate samples. Experimental results indicate that high temperature processing and uncontrolled process parameters were the major causes for scaling and distortion, which effect the performance of nickel steel.