The effects of thermal treatment on the microstructure of bi-phasic materials comprising halfHeusler (hH) and full-Heusler (fH) phases, as well as on their associated thermal conductivity, are discussed. The focus is on a biphasic hH/fH alloy of nominal stoichiometry TiNi 1.2 Sn, synthesized by containerless (magnetic levitation) induction melting. The alloy samples were exposed to various heat treatments to generate microstructures containing second phase precipitates ranging from ~10 nm to a few micrometers. The materials were characterized with regard to morphology, size, shape and orientation relationship of the fH and hH phases, both of which are present as precipitates within larger regions of the counterpart phase. The solidification path of the alloy and its implications for the subsequent microstructure evolution during heat treatment were elucidated, and relationships with the ensuing thermal conductivity were characterized.