The effect of continuous multistep hydrogenation treatment (CMHT) step on the microstructure of TC21 alloy was investigated by OM, XRD and TEM. Compressive properties of CMHT-processed TC21 alloys under diverse compressive velocities were also studied through room-temperature compression experiments. Results showed that the amount of α phase decreased and the amount of β phase and δ hydride increased as the CMHT step increased. α'''' martensite occurred only in TC21 alloy processed by one step CMHT. The deformation limit of CMHT-processed TC21 alloys showed the same change law under diverse compressive velocities, which decreased first, then increased, and finally decreased again as the CMHT step increased. The maximum increase of the deformation limit of TC21 alloy after CMHT reached 93.96% as compared to the original TC21 alloy. Reasons for the change of compressive properties of TC21 alloy processed by CMHT were analyzed.