Five different samples were fabricated via altering pre-ageing temperature to explore the effects of pre-precipitation states on dynamic recrystallization (DRX) and microstructure evolution during hot compression of Ni−38Cr−3.8Al alloy. Results reveal that α-Cr phases precipitate from the matrix in lamella and particle forms during pre-aging treatment. During subsequent hot deformation, the pre-precipitated α-Cr lamellae experience significant dissolution fragmentation and spheroidization, transforming into finer particles due to the elevated temperature and high-density dislocations. At 560 °C, incomplete discontinuous precipitation (DP) state inhibits DRX, leading to necklace-like microstructures. As temperature exceeds 640 °C, complete DP state promotes DRX, resulting in ultrafine-grained microstructures. Coarse α-Cr particles enhance DRX process through particle-stimulated nucleation (PSN) and discontinuous DRX mechanisms, while dissolved α-Cr lamellae promote DRX via continuous DRX mechanism. The DRX kinetics analysis indicates that increasing pre-ageing temperature accelerates DRX, as demonstrated by reduced critical strain and peak strain, and increased DRX volume fraction.