Cast aluminium alloys are being employed increasingly in the automotive sector due to their light weight and excellent castability. This paper focuses on the strain hardening behaviour of Hipped and non-Hipped components of cast aluminium alloy 354 subjected to two-step ageing, as opposed to the routinely carried out single-step ageing. First step ageing (at 100°C) was carried out for 2 h and 5 h; ageing time at second step (at 170°C) was 1, 2 and 5 h. Mechanical properties and strain hardening behaviour were evaluated for different variants of two-step ageing treatment. Analysis of the results shows that the Hipped components have higher hardening capacity and generally higher strain hardening rate compared to the non-Hipped ones. Some of the two-step ageing treatments give mechanical properties comparable to the conventional T61 treatment, but with significantly higher strain hardening rate.