Hot-dip galvannealed steel sheets, in which Fe of the substrate steel diffused into upper coating layer so as to be alloyed with Zn through a galvannealing above 450degreesC followed by hot-dip galvanizing process, generally show superior corrosion resistance, weldability and paintability. They have been widely used in automobile, construction, appliance industries and others. In particular, many researches have been carrying out to produce defect-free coating for an exposed automotive body panel. In the present study, high strength interstitial-free steel sheets containing Mn and P were galvannealed in an industrial continuous galvanizing line and defects on the coating surface were investigated by optical microscopy, scanning electron microscopy and transmission electron microscopy. It is clear that the quality of the substrate strongly affects galvannealed coating and it is essential to keep clean surface just before immediately dipping into molten Zn pot.