To investigate the deformation characteristics of Lüders-like bands (LDBs) in NiTi alloy, the uniaxial tensile testing was conducted under isothermal condition using the digital image correlation (DIC) technique. Based on the changes in the strain field near the LDBs during the initiation, propagation, and expansion of the LDBs, a novel crystal rotation model was proposed to explain the formation of the LDBs. The model focused on the microstructural evolution that occurred at the front of the phase transformation interface when the LDBs appeared, providing a fresh perspective on the mechanism of the formation of the LDBs.