In order to develop novel high damping materials with excellent pseudoelasticity (PE) properties to meet the application requirements in aerospace, medical, military and other fields, porous Ni50.8Ti49.2 shape memory alloy (SMA) was prepared by the powder metallurgy method. Different contents of Nb element were added to regulate the microstructures. It was found that after adding the Nb element, the number of precipitates significantly decreased, and the Nb element was mainly distributed in the Ni-Ti matrix in the form of β-Nb blocks surrounded by Nb-rich layers. Property tests showed that with the increase in Nb content, the damping and PE increased first and then decreased. When the Nb content reached 9.0 at.%, the highest damping and the best PE could be achieved. Compared with the porous Ni-Ti SMA without Nb addition, the damping and PE increased by 60% and 35%, respectively. Correlated mechanisms were discussed.