NiTi shape memory alloys are a group of materials which have a lot of applications especially in aerospace industries and medical equipments because of their excellent properties. Shape memory effect (SME), pseudo-elasticity (PE), high corrosion resistance and biocompatibility is special properties of these alloys which lead to their extensive applications. The superior behavior of NiTi alloy is due to thermoelastic martensitic phase transformation. In the present paper, two NiTi shape memory alloys were prepared by non-consumable vacuum arc melting technique in copper water cooled crucible. One of them had commercial elements and the other had high purity elements. Metallographic investigation, chemical analysis, XRD and DSC were carried out on two alloys. Metallographic observation and XRD shows that structure at ambient temperature consists of austenite phase besides Ti2Ni, Ni3Ti intermetallic compounds and martensite phase. Transformation investigation determines that the impurity such as iron in commercial alloy causes two stage phase transformation B2→R→B19′.