The Fe2P type Mn–Fe–P–Si alloys exhibit a giant magneto-elastic first-order transition, but the large hysteresis limits their performance. Crystal structure evolution and magnetocaloric performance were investigated by varying the Mn and Fe contents at a constant V substitution of 0.02 in Fe2P-type (Mn1.17-xFe0.73-yV0.02) (P0.5Si0.5) (where x + y = 0.02). The V substitution of Fe content shows a larger reduction of hysteresis compared with the same substitution amount of Mn content. During magnetoelastic phase transition, V-substitution reduces the volume change and the volumetric stresses, providing a superior mechanical stability. Compound with the V substitution of Fe (y = 0.02) shows the best magnetocaloric effect with a low thermal hysteresis of 0.6 K. Our developed Mn1.17-xFe0.73-yV0.02P0.5Si0.5 alloys are excellent materials for room-temperature magnetic heat-pumping applications by using a permanent magnet.