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The work clarifies several key questions in shape memory research that have eluded previous studies. The f indings show that dislocation slip emanates at austenite-martensite interfaces during unloading and aligns with the internal twin boundary interface of martensite. It was observed that the type II internal twins of the martensite become parallel dislocations in the austenite. During reloading, these dislocations act as nucleation sites for the martensitic twins, reducing the nucleation barrier and the transformation stress. The precipitates facilitate martensite nucleation but also act as an obstacle to martensite front motion, restrict detwinning, and pin the interfacial dislocations during unloading, thereby contributing to residual strains and martensite stabilization. Martensite nucleation is not suppressed by the size of the thin film, which is of the order of 85 to 105 nanometers thick, and repeated transformation occurred cycle after cycle. Single crystals deformed in the <101> LD exhibited the best recoverability of up to 5.5 % and tensile stresses of up to 1.4 GPa. It was demonstrated for the first time that, when favorably oriented, Ni 4 Ti 3 precipitates undergo a reversible phase transformation to R-phase and can accommodate up to 4 % reversible strains.