The basic concept underlying the alloy design and microstructural control method utilised in developing a new type of β (B2) + γ (A1) two-phase ductile shape memory alloy in the Ni-Al base systems is briefly reviewed. The characteristic features of the shape memory effect (SME) in the Ni-Al-Fe and Ni-Al-Fe-Mn alloys are reported with particular reference to the transformation and deformation temperatures, the volume fractions of the γ phase, the morphology of the β + γ structure and the effect of cycling. Training by cycling treatment has a significant effect on the degree of shape recovery and pseudo-elasticity in the β + γ two-phase alloys. These duplex β + γ alloys also exhibit a combination of relatively high damping capacity and high yield strength. It is emphasized that these alloys could be expected to fill the need for a new group of shape memory alloys which operate at elevated temperatures over 100°C.