The effects of shape memory, martensite transformation plasticity, and two-way shape memory in nickel titanium (TiNi) prestrained in an alternating-sign regime have been studied. The reversible deformation and the temperature-dependent deformation kinetics in the temperature interval of martensite transformation were independent of the degree of prestraining. It is concluded that an increase in the density of dislocations does not significantly influence the mechanical behavior of nickel titanium in the vicinity of the martensite transformation. The results of computer simulation based on the structural analytical theory are in satisfactory agreement with experiment.