A new ferromagnetic shape memory alloy consisting of Fe-Cr-Co-Ni-Si-Mn has been developed by means of the melt spinning technique. The alloy has both the shape memory effect and the comparatively high-magnetic permeability itself. The shape memory effect can be improved with annealing upon the alloy but at the same time it loses good ferromagnetic properties. This paper discusses shape memory characteristics measured by differential scanning calorimeter (DSC) and thermo-mechanical analyzer (TMA). Improvement of the shape memory effect is observed in samples containing manganese from 5% to 6% (weight percent), after annealing at temperature over 800°C.