The precipitation conditions of titanium containing non-metallic inclusions in X120 pipeline steel are calculated with thermodynamics. In term of calculation of the target content of titanium in the pipeline steel X120 ( w(Ti)=0.015%), when w(Al)=0.000 35 %~0.003 30 % Al2O3·TiO2 is formed and when w(Al)>0.003 30 % Al2O3 occurs and pure MgO inclusion can be formed only if w(Mg) >1.62×1013,and composite inclusions 2MgO·TiO2 can be formed if w(Mg)=0.0008%. No pure MgO inclusions can be found in the X120 pipeline steel, in other word in the pipeline steel such a few deoxidation products as 2MgO·Ti2O3、MgO·A12O3、SiO2、A1203、Ti2O3、MnO may exist and they may mix with the sulphides to form the composite inclusions. The Results of observation by SEM are in coincidence with that of the thermodynamic calculation. The ferrite nucleation stimulated by Ti containing inclusions is observed by SEM and results show that Ti containing incusions in X120 pipeline steel possesses very strong ability to stimulate the nucleation of ferrite.