Martensitic Ni-Mn-Ga based alloys are known for the Magnetic Shape Memory (MSM) effect, which upon application of an external magnetic field can generate a strain up to 12 % depending on the microstructure of the martensite. The MSM effect occurs by rearrangement of the martensite variants, which is most advantageous in single crystals. Single crystals are, however, rather tedious to produce and there has been attempts to achieve MSM effect in polycrystals. However, in polycrystals the magnetic field induced shape change remains low as compared to single crystals. As an alternative to the former, hybrid MSM materials offer several advantages. When compared to single crystals, hybrids have extended freedom of shaping, lower raw material price, relatively large MSM strain and easier manufacturability. Embedding MSM particles into a suitable polymer matrix results in actuation function or good vibration damping performance. In the present study we report on the mechanical, structural and magnetic properties of MSM polymer hybrids, which are prepared by mixing gas-atomized Ni-Mn-Ga MSM powder into epoxy matrix and aligning the magnetic particles in a magnetic field.