This article proposes a simple and fast method of induction heating and quenching to produce surface gradient structure for S38C steel, and its mechanical behavior and strengthening mechanism are revealed. The variation of the gradient structure from surface to interior is characterized by electron backscatter diffraction, and the tensile behavior of the gradient structure at different depths is acknowledged by the small-scale tensile tests. The gradient structure is tempered martensite microstructure, which significantly improves the hardness and tensile strength of surface and subsurface regions. Accordingly, with the strengthening of the gradient structure, the general tensile strength and fatigue behavior of the S38C steel are increased close to those of high-strength steel. Moreover, the fatigue crack initiation mechanism of the gradient structure is studied by energy dispersive spectroscopy, transmission Kikuchi diffraction, and transmission electron microscope characterization on the crack initiation regions. It reveals that the fatigue failure of the gradient structure can be due to stress concentration on the surface and around subsurface inclusions, and the crack initiation modes present surface crack initiation and internal crack initiation, respectively. This article explores an induction-heating method to produce a surface gradient structure for S38C steel. The gradient structure is tempered martensite microstructure, which improves the hardness and tensile strength of surface and subsurface regions. This gradient structure can improve surface strength, inhibit crack initiation, and prolong service life for structural application.image (c) 2023 WILEY-VCH GmbH