This paper is concerned with the application of fundamental thermodynamic theories in the analysis of thermoelastic martensitic transformations in shape memory alloys, with a particular reference to polycrystalline NiTi. The discussion is delivered in two parts. The first part presents a concise overview of the fundamental theories of thermodynamics of thermoelastic martensitic transformations established in the past 30 years. The second part focuses on the principles governing the application of the theories, interpretation of the thermodynamic parameters defined in the theories, experimental determination of the parameters, and some common misperceptions and unjustified assumptions in practice concerning these parameters.