Ti 50.6 Pd 30 Ni 19.4 high-temperature shape memory alloy (SMA) has been prepared to investigate the mechanical properties under various tensile conditions. It has been found that shape memory effect (SME) exists even at temperature higher than austenite finish temperature (A f ), the mechanism is the reverse transformation of the stress-induced martensite at a higher temperature. The stress–strain curve exhibits a cycle when the alloy was subjected to loading–unloading cycling at different temperature. But the shape and characteristic of the hysteresis cycle are related to the loading history. Complete linear pseudoelasticity is obtained when the specimens are tested at temperature near A f , while elastic hysteresis for the specimens of a stable single phase.