Evolution of microstructure and texture in Al-2.5%Mg and Al- 2.5%Mg-0.2%Sc alloys during severe cold rolling and subsequent annealing was studied using electron back scatter diffraction (EBSD). These alloys were first thermo-mechanically processed to sheets of average thickness (~1mm) with well recrystallized microstructures. These sheets were subsequently severely coldrolled up to an equivalent strain of 4.32 using a combination of Accumulative Roll Bonding and conventional cold-rolling. The deformed alloys were subjected to isochronal annealing treatment for one hour in a wide temperature range. Development of Ultrafine lamellar microstructure subdivided by high angle grain boundaries (HAGB) and pure metal or copper type texture was observed in both the alloys during deformation. Al-Mg-Sc consistently showed higher hardness as compared to the Al-Mg. Al-Mg recrystallized around ~ 2500C but in Al-Mg-Sc the recrystallization was greatly delayed up to 500°C and the deformation texture components were retained during annealing. The differences in the recrystallization behavior of two materials were discussed with regard to the deformation microstructure and presence of fine precipitates. © 2014 The Minerals, Metals & Materials Society.