Effect of carbon, compound RE, quenching temperature, pre-strain and recovery temperature on shape memory effect (SME) of Fe-Mn-Si-Ni-C-RE shape memory alloy was studied by bent measurement, thermal cycle training, SEM etc. It was shown that the grains of alloys addition with compound RE became finer and SME increased evidently. SME of the alloy was weakening gradually as carbon content increased under small strain (3%). But in the condition of large strain (more than 6%), SME of the alloy whose carbon content range from 0.1% to 0.12% showed small decreasing range, especially of alloy with the addition of compound RE. Results were also indicated that SME was improved by increasing quenching temperature (>1000℃). The amount of thermal induced martensite increased and the relative shape recovery ratio could be increased to more than 40% after 3-4 times thermal training. The relative shape recovery ratio decreased evidently depending on rising of pre-strain. Furthermore, because speed of martensite transi Effect of carbon, compound RE, quenching temperature, pre-strain and recovery temperature on shape memory effect (SME) of Fe-Mn-Si-Ni-C-RE shape memory alloy was studied by bent measurement, thermal cycle training, SEM etc It was shown that the grains of alloys addition with compound RE became finer and SME increased evidently. SME of the alloy was weakening gradually as carbon content increased under small strain (3%). But in the condition of large strain (more than 6 %), SME of the alloy whose content range from 0.1% to 0.12% showed small decreasing range, especially of alloy with the addition of compound RE. Results were also indicated that SME was improved by increasing quenching temperature (> 1000 ° C). The amount of thermal induced martensite increased and the relative shape recovery ratio could be increased to more than 40% after 3-4 times thermal training. The relative shape recovery ratio decreased evidently depending on rising of pre-strain. f martensite transi