In this research work, the effect of Fe additions on the phase evolution, microstructure, chemical composition, transformation behaviour and properties of Ni (50−X) Ti 50 Fe X shape memory alloys has been investigated. The elemental Ti, Ni and Fe mixed powders are compacted at 600 MPa, followed by sintering at 1100°C for 4hr in an Ar atmosphere. Phase analysis and microstructural studies confirmed the presence of the NiTi phase besides other Ni-rich and Ti-rich phases. The 8at.-% Fe sample shows higher relative density, lower porosity, higher hardness, higher elastic modulus and higher wear resistance owing to the presence of a higher amount of secondary intermetallic phases compared to other composition samples. Interestingly, the 4at.-% Fe sample has a higher percentage of NiTi (B19') phase and shows a better shape memory effect and elastic recovery than other composition samples. FESEM morphology of worn surface explained various wear mechanisms with respect to shape memory behaviour.