The effect of induction hardening on the microstructure and hardness of Inconel 718 nickel alloy is investigated. The main phases of Inconel 718 are gamma prime γ’ face ordered Ni3 (Al, Ti) and gamma double prime γ’’ face ordered Ni3Nb.Comparative studies are done for received sample (NR), induction hardened at temperature 850◦C with oil quenched (IHT1) and induction hardened at temperature 1000◦C with oil quenched (IHT2). The samples that underwent induction hardening at 1000°C showed an increase in grain size and induction hardened at 850°C, SEM findings indicate that Nb is more segregated near grain boundaries. However, X-Ray diffraction studies indicated that there is an increase in hardness of induction hardened samples due to evolution of γ' and γ" precipitates.