To further improve shape memory effect (SME) of the recently modified Fe-Mn-Si based alloys which contain Nb and C, the effect of pre-deformation of austenite on SME has been extensively examined. The new finding is that small amount of rolling at 870 K and subsequent ageing at 1070 K for 10 min can substantially improve the SME. A complete shape recovery is obtained for up to 2% strain and 90% shape recovery is attained for 4% strain in Fe-28Mn-6Si-5Cr-0.5NbC (mass %). In addition, the shape recovery strength is much increased by this treatment. For example, 254 MPa shape recovery strength is obtained at room temperature after extension of 4.6%, being heated above A, and cooled to room temperature. Such recovery strength is higher than the critical strength required for industry applications.