In this work, we have investigated some physical and mechanical properties of martensitic transformation in Fe-12.5%Mn-5.5%Si-9%Cr-3.5%Ni (wt) shape memory alloy. Compressive deformation at room temperature, which applied to ε(hcp) phase within austenite phase cause the formation of α′(bcc) martensite crystals at intersection of prior ε martensite plates and also new formed ε martensite plates were observed. Scanning electron microscopy (SEM), transmission electron microscopy (TEM) and X-ray diffraction methods were applied for revealing microstructural and crystallographic features of martensitic transformations in this alloy. Also effect of prior homogenization time on the martensitic transformations and their mechanical features were stress-strain curves. © 2006 Elsevier B.V. All rights reserved.