The effect of Al substitution on microstructure, martensitic transformation and magnetocaloric properties in Ni 48 Mn 39.5 Sn 12.5−x Al x (x = 0, 1, 2, 3) alloys is reported. At room temperature, depending on Al concentration, the alloys have typical Heusler L2 1 austenite structure and/or orthorhombic martensite structure with Pmma space group. A secondary Ni-Mn-Al phase also appears already for low Al concentrations (x ≥ 1). On cooling, irrespective of Al substitution, all the samples show ferromagnetic type ordering below 303 K in the austenite phase. The martensitic transition temperature varies with Al content. All the alloys undergo magnetic field-induced reverse martensitic transformation giving rise to an inverse magnetocaloric effect. The largest magnetic entropy change (8.5 J•kg −1 •K −1) is observed near 280 K for the Ni 48 Mn 39.5 Sn 12.5 alloy.