Abstract: By consideration of the characteristics of martensitic transformation and the derivation from the application of the group theory to martensitic transformation, it may be concluded that the shape memory effect (SME) can be attained in materials through a martensitic transformation and its reverse transformation. only when there forms single or nearly single variant of martensite, with an absence of the factors causing the generation of the resistance against SME. on this principle, various shape memory materials including nonferrous alloys. iron-based alloys and ceramics containjng zirconia are expected to be further developed. A criterion for thermoelastic martensitic transformation is presented, Factors which may act as the resistance against SME in various materials are briefly described