Deformation related to faulting accumulates over the course of the seismic cycle. Considerable focus has been placed on studying slip-related damage through fracturing and mesoscale structures, assuming negligible contribution from grain-scale plasticity. Calcite crystals exhibit a unique ability to twin under applied stress, even at low temperatures. However, the role of dislocation-mediated plastic deformation (plastic damage) and recrystallization (recovery) processes have received limited attention. Here, we combine microstructural analysis and nanoindentation testing of a suite of calcite-bearing faults from northern and central Israel to discern plastic damage and potential recovery mechanisms. Microstructures from various distances from the fault surface (0.5 – 20 mm) were studied using an optical microscope and electron backscatter diffraction (EBSD) and further studied indented calcite grains via transmission electron microscopy (TEM). Plastic damage was depicted through detailed orientation maps revealing grains with high intragrain misorientation, typically caused by dislocation structures. However, some of the intragrain misorientations may also originate from micro-fractures formed during the pulverization process. The relationship between grains with high and low intragrain misorientation suggests that low-strain-energy grains consumed highly strained ones, indicating active recovery through recrystallization. Several samples show distinct twinning, indicative of elevated differential stresses that might exceed hundreds of MPa. Nanoindentation tests with similar stresses have corroborated the twin-density vs. stress trend implying that these regions may have acted as fault asperities. Overall, the observed microstructures reflect deformation features that result from fault-slip episodes. These microstructural fabrics are consistent with the distinctive magnetic fabric of carbonate faults along the Dead Sea fault found in earlier studies. We further discuss whether the origin of microstructure damage can be related to seismic or aseismic slip events and whether frictional heating can promote microstructural recovery near the fault core.