The effect of iron additions (up to 7 wt.%) on the β b.c.c.-phase stability with respect to α″ orthorhombic-martensite and the corresponding transformation volume change in V-28Al-17Ti (wt.%) alloy has been studied using optical microscopy and X-ray diffraction. It was found that iron additions stabilize the β phase while the volume change remains positive and relatively high (3–4%). Using a liquid nitrogen refrigeration treatment and introducing cracks into the materials to further test β-phase stability, and carrying out a thermodynamic analysis, it was found that an addition of 5 wt.% of iron gives rise to the optimum level of stability of the β phase. This, in turn, should ensure maximum transformation toughening effects when this alloy is used as a dispersed phase within a γ titanium aluminide matrix.