Texture and microstructural examinations of Fe-23%Mn-3%Si-3%Al (mass%) alloy are presented. After casting the ingot was homogenized at 1150• C, hot-rolled in the temperature range 1200• C-900• C and then coldrolled. Steel samples, after 40% deformation, were annealed at 300• C for 10 min, 600• C and 750• C for 30 min. X-ray diffraction and metallographic studies revealed deformation-induced mechanical twinning and phase transformation. The crystallographic Shoji-Nishiyama and Kurdjumov-Sachs relations between martensite (ε, α ) and austenite (γ), were found in the cold-rolled material. During annealing the reverse martensite to austenite transformation occurred.