The effect of low-temperature annealing on the structure, kinetics of martensitic transformations, and functional properties of an equiatomic TiNi shape memory alloy is studied. Low-temperature annealing of the TiNi alloy is shown to decrease the temperature of the end of the forward martensite transformation Mf and the temperature of the onset of the reverse transformation As, which increases the transformation temperature range. As a result, the shape memory effect is improved due to a decrease in the irreversible strain. These phenomena are assumed to be caused by the hardening of the TiNi alloy induced by low-temperature annealing. © 2011 Pleiades Publishing, Ltd.