Recently, deep cryogenic treatment is performed to improve the mechanical responses (wear, hardness, fatigue, and thermal conductivity) of various steel components. Researchers have tried to evaluate the eco-friendly and nontoxic process to optimize the parameters. Cold-shearing punches used to manufacture various holes that undergo severe impact loading and wear in the metal forming process. This study concerns the effect of soaking time (24 hr, 36 hr) at liquid nitrogen temperature (−145 °C) during the deep cryogenic treatment on the microstructural changes which are carbide distribution and retained austenite percentage of AISI D3 tool steel punches. It was shown that the deep cryogenic treatment reduces retained austenite and enhanced uniform distribution of carbide particles. It is concluded that for significantly improved punch life and performance, it is an advisable application of 36 hr deep cryogenic treatment.