Ti17 alloy is mainly used to manufacture aero-engine discs due to its excellent properties such as high strength, toughness and hardenability. It is often subjected to creep–fatigue cyclic loading in service environments. Shakedown theory describes the state in which the accumulated plastic strain of the material stabilizes after several cycles of cyclic loading, without affecting its initial function and leading to failure. This theory includes three behaviors: elastic shakedown, plastic shakedown and ratcheting. In this paper, the creep–fatigue tests (CF) were conducted on Ti17 alloy at 300 °C to study its shakedown behavior under creep–fatigue cyclic loading. Based on the plasticity–creep superposition model, a theory model that accurately describes the shakedown behavior of Ti17 alloy was constructed, and ABAQUS finite element software was used to validate the accuracy of the model. TEM analysis was performed to observe the micro-mechanisms of shakedown in Ti17 alloy. The results reveal that the Ti17 alloy specimens exhibit plastic shakedown behavior after three cycles of creep–fatigue loading. The established finite element model can effectively predict the plastic shakedown process of Ti17 alloy, with a relative error between the experimental and simulation results within 4%. TEM results reveal that anelastic recovery controlled by dislocation bending and back stress hardening caused by inhomogeneous deformation are the main mechanisms for the plastic shakedown behavior of Ti17 alloy.