Abstract A new model of texture development in recrystallization of cold-rolled interstitial free (IF) steel is proposed in this paper. This model assumes that oriented nucleation takes place in the vicinity of grain boundaries, where the orientation of an area rotates to a common orientation during deformation. The orientation of recrystallized nuclei is selected between the orientation of the deformed grain and the orientation of the grain boundary area. Nucleation first starts in grains that have the highest stored energy of deformation, and then progresses in grains that have lower stored energy. The development of γ fiber (ND//<111>) annealing texture can be explained using the model. The predicted texture differences resulting from differences in cold rolling reduction correspond to the experimental results.