Abstract. Processes, occurring on annealing of TiNi alloy, processed by high pressure torsion (HPT), were the focus of this research. Some peaks of heat release were found on heating the deformed samples up to 550 °C. If the initial structure of the alloy was amorphous (after 3.5 turns of HPT), then structural relaxation, crystallization and grain growth occurred on heating. When alloys had a crystalline structure (after rotation by 15 and 90 degrees), recovery, recrystallization and further grain growth took place on heating. It was observed that the TiNi alloy, subjected to 3.5 turns of HPT and subsequent heating up to 550 °C, underwent unusual kinetics of martensitic transformations. Austenite B2 phase transformed to martensite B19' phase following two transformation sequences B2→R→B19' and B2→ B19'.