In an Fe–9 at.% Mn maraging alloy annealed at 450 °C reversed allotriomorphic austenite nanolayers appear on former Mn decorated lath martensite boundaries. The austenite films are 5–15 nm thick and form soft layers among the hard martensite crystals. We document the nanoscale segregation and associated martensite to austenite transformation mechanism using transmission electron microscopy and atom probe tomography. The phenomena are discussed in terms of the adsorption isotherm (interface segregation) in conjunction with classical heterogeneous nucleation theory (phase transformation) and a phase field model that predicts the kinetics of phase transformation at segregation decorated grain boundaries. The analysis shows that strong interface segregation of austenite stabilizing elements (here Mn) and the release of elastic stresses from the host martensite can generally promote phase transformation at martensite grain boundaries. The phenomenon enables the design of ductile and tough martensite.