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Newly designed gears are subject to higher loads that demand a steel that is capable of greater pitting resistance. The application of shot peening to gears has been increasing to improve tooth root strength, but pitting resistance had not been necessarily high. This study examines the effect of alloying additions mainly on tempering resistance and the formation of a non-martensitic layer. The developed high Si-Mo type steel shows excellent pitting resistance, even in shot peened gears, as compared to that of conventional steels due to high tempering resistance and the thin, uniform non-martensitic layer. This new steel is of practical use in some multi-speed automatic transmission gears.