The torsion test is considered as the best test used when the part is subjected to static or dynamic torque. Many published papers have investigated the torsion of non-heat treated metals. However, very few published papers dealt with the torsion behaviour of heat treated metals. The aim of this work was to study the effect of heat treatment on the torsion behaviour of steel alloy (AISI 01), which can be used for manufacturing small and medium drills, taps and reamers. The diameter of specimens used was 15 mm. The metal used was heat treated under different conditions, then torsionally tested. The results of torsion test were divided into two groups: results obtained during elastic limit from which the shear stress, shear strain and modulus of rigidity were calculated, while from the results obtained during plastic limit the plastic depth was calculated by applying derived equation when the angle of twist was more than yield value. The results obtained indicated that the value of hardness alone is not sufficient to establish heat treatment conditions. Rather, it was found that the determination of plastic depth together with hardness can help in the establishing of the optimum condition which was hardening temperature of 820C, hardening time 20 minutes and tempering temperature 220C. This condition produces hardness of 60 HRc and plastic depth of 2.5 mm.