Abstract This paper introduces a comprehensive computational framework, comprising a finite deformation crystal inelasticity constitutive model and phase field model, for modeling crack growth in superelastic nitinol polycrystalline microstructures. The crystal inelasticity model represents crystal stretching and lattice rotation from elastic mechanisms, as well as local inelastic deformation due to austenite-martensite phase transformation. The phase field formulation decomposes the Helmholtz free energy density into stored elastic energy, phase transformation energy, and crack surface energy components. The elastic energy accounts for tension-compression asymmetry with the formation of the crack through a spectral decomposition. Kinetic Monte Carlo simulations generate equilibrium area fractions of different surface orientations, which serve as weights for the surface energy. An adaptive wavelet-enhanced hierarchical finite element (FE) model is introduced to alleviate high computational overhead in phase field crack simulations. Simulations with the coupled inelasticity phase field model are conducted under various loading conditions including Mode-I tension, a quasi-static Kalthoff experiment, and cyclic loading of polycrystalline microstructures. Crack propagation is effectively predicted by this model, providing valuable insights into the material mechanical behavior with growing cracks.