Shape memory alloy (SMA) heat engines possess an inherent property of sensing a change in temperature, performing work, and rejecting heat through the shape memory effect resulting from a temperature-induced phase transformation. This work presents a framework for the design and implementation of an SMA-based Stirling heat engine for maximum torque or speed incorporating and combining mechanical, thermal, and material aspects. There is a growing need for such engines for reliable thermal management and energy recovery in both ground and space applications. Mechanical aspects were addressed from force balances in the SMA element and focused on the resulting stress distribution. Thermal aspects considered heat transfer between the SMA element and both the heat source and the heat sink. Materials aspects considered the chemical, elastic, and frictional contributions to the enthalpy of the transformation. The roles of nano- and microstructure through composition, precipitates, variant interfaces, training, cycling, texture, defects, nucleation sites (bulk vs. surface), and multi-step transformations (e.g., a trigonal R-phase transformation) in NiTi based-alloys are also emphasized. The aforementioned aspects were combined to present a figure of merit to aid in the design and implementation of a Nitinol Stirling heat engine operating to maximize torque or maximize speed.