The ferritic oxide dispersion-strengthened alloy PM2000 is an ideal candidate for high-temperature applications as it contains uniform nano-oxide dispersoids, which act as pinning points to obstruct dislocation and grain boundary motion and therefore impart excellent creep resistance. The development of the microstructure during re-crystallization of oxide dispersion-strengthened alloys has been discussed by a number of authors, but the precise mechanism of secondary re-crystallization still remains uncertain. Hence, this work is aimed at investigating the re-crystallization behaviour of extruded PM2000 bar for different annealing temperatures, using electron backscatter diffraction, in particular, to determine grain orientations, grain boundary misorientation angles, etc. The results show that the as-extruded bar microstructure comprises both low-angle grain boundaries pinned by oxide particles and high-angle boundaries that will have inherent boundary mobility to allow boundary migration. In addition, dynamical re-crystallization was found in the outer region of the non-heat-treated PM2000 bar, which suggested that deformation heterogeneities can be introduced during thermo-mechanical processing that enhance the nucleation of re-crystallization. Subsequent heat treatments promote and stimulate secondary re-crystallization, giving rise to large grains with few sub-grain boundaries.