As part of a study on the newly developed Fe-based shape memory alloys associated with face-centered cubic-hexagonal close-packed (fcc-hcp) martensitic transformations, transfor-mation behavior is characterized utilizing a combination of electrical resistance, dilatometry, and magnetic susceptibility measurements. The characteristics of thermally induced and strain-induced ε martensitic transformations under the influence of antiferromagnetism are discussed based on the experimental results. The variations of shape memory properties with prestraining temperature are interpreted in terms of the transformation characteristics. It is shown that the ε martensite can be readily strain-induced under the stabilization effect of the antiferromagnetism which strongly suppresses the thermally induced transformation. The strain-induced transfor-mation of ε martensite is more preferred as a predominant deformation mechanism at low tem-peratures under a combined influence of the antiferromagnetism and other physical factors, whereas the irreversible deformation mode is more likely with prestrain at relatively high tem-peratures. The transformation characteristics can be significantly changed by alloying and mechanical /thermal treatments. This offers a possibility of developing new practical Fe-based shape memory alloys with a wide range of mechanical and physical properties. © 1992 The Minerals, Metals and Materials Society, and ASM International.