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NiTiHf is a class of promising high-temperature shape memory alloys (SMAs) that find many applications. However, their complex martensitic microstructure and attendant thermomechanical properties are not well understood. In this work, we used solution-treated (precipitate-free) and aged (precipitate-bearing) Ni50.3Ti29.7Hf20 (at.%) SMAs as a model system. We observed that the presence of precipitates refines the martensite plates, reduces the number of martensite variants, and changes the orientation relationship between the martensite plates compared with the solution-treated counterpart. Furthermore, the aged samples exhibited higher transformation temperatures, narrower phase transformation temperature windows, improved thermal stability, and retained or even improved actuation strain. The improved thermomechanical properties observed in the aged samples are attributed in part to the reduction of the number of martensite variants and the change in martensite and twin interface characteristics, both of which are induced by the presence of precipitates. The findings of this study offer new information on the processing-property-microstructure relationship in NiTiHf-based SMAs. These insights can guide future materials design efforts, facilitating the development of advanced SMAs tailored for specific high-temperature applications.