This study presents the fracture toughness improvement of the powder metallurgical high speed steel ASP2030 by replacing the martensitic matrix with a bainitic one. For this purpose, the fracture toughness of the steel is compared in both the austempered and marquenched states. The heat treatment of the samples was carried out by austenitizing in the range of 1150-1185C followed by either austempering at 235C or marquenching processes. Triple tempering at 560 C for 2h was also performed on all specimens. Fracture toughness measurements were performed on circumferentially notched tensile specimens. The microstructural features of the specimens were investigated using X-ray diffraction, optical and electron microscopy, and electron backscatter analysis. The results showed that the fracture toughness is sensitive to small changes in austenitizing temperature at both heat treatment conditions. By increasing the austenitizing temperature from 1150 to 1170C, the fracture toughness increases and then decreases with a further increase in temperature to 1185C. The results suggest that the changes in fracture toughness are due to the simultaneous effects of the volume fraction of undissolved carbides and the lattice microstrain values at different austenitizing temperatures. It can be concluded that the fracture toughness increases when the martensitic matrix is replaced by a bainitic structure. This improvement is related to finer bainitic laths width and also to the larger spacing between the particles of the undissolved carbides.