Previous research has consistently found that introducing metastable retained austenite (RA) as a second phase retards the failure of steel under fatigue. However, the reasons for this benefit are not understood. Accordingly, the properties of RA most advantageous to resist fatigue are not known. Within this context, this paper examines the interaction between second-phase RA and short fatigue crack growth in a steel processed via quenching and partitioning, using quasi in situ electron backscatter diffraction experiments. Results show that most RA transforms into martensite under the plastic strain surrounding the crack. They also reveal various mechanisms whereby RA transformation delays short fatigue crack propagation; transformation-induced crack closure (TICC), crack deflection and branching, and roughness-induced crack closure (RICC). Crack deflection and branching are driven by a tendency of cracks to propagate towards transformed RA, which is against the previous assumptions in the literature. Furthermore, the impact of crack deflection/branching on retardation is more powerful than that of TICC acting alone. Microstructures including second-phase RA should avoid RA-lean areas and promote elongated RA grains, with relatively large size, and major axis normal to the preferential crack growth direction. Untransformed RA within the plastic zone (i.e. overstabilized) does not contribute to crack retardation.