The influence of rapid thermal annealing temperature on the microstructure, martensitic transformation and mechanical properties of Ni55.2Mn24.7Ga19.9Gd0.2 thin films was investigated. It was shown that as-deposited film displayed a coexistence of amorphous and austenite nano-crystals. When the annealing temperature was above 450 °C, Ni55.2Mn24.7Ga19.9Gd0.2 thin films possessed seven-layered modulated martensite structure. With annealing temperature increased from 450 °C to 750 °C, the average grain size of annealed films increased from 126 to 596 nm and the transformation temperature also increased gradually. Fracture strain of 6.1% and tensile strength of 636 MPa were obtained for the Ni55.2Mn24.7Ga19.9Gd0.2 thin film annealed at 550 °C.