Abstract In this study, taking Pd2MnTi as a representative example, the electronic structure evolution during martensitic phase transition in all-d-metal Heusler compounds was systematically studied and revealed theoretically. The calculation and theoretical analysis suggest that Pd2MnTi is not stable in cubic structure and prones to transform to low-symmetric tetragonal structure. By tetragonal deformation, the shrinkage of lattice parameters and the decrease of symmetry promote the electron accumulation between Pd and its first nearest neighboring Ti atom, resulting in the increased covalent hybridization. The occurrence of pesudogap in density of states (DOSs) of tetragonal Pd2MnTi near the Fermi level also verifies the enhancement of covalent bond. Comparatively, the stronger interatomic bond in tetragonal Pd2MnTi, i.e., covalent bond here, would strengthen interatomic coupling and consequently lower the energy of the material. By the martensitic phase transition, more stable state in energy was achieved. Thus, based on the analysis of electronic structure evolution, the nature of martensitic phase transition is a process wherein symmetry breaking weakens the original weak chemical bonds in high-symmetric parent phase and induces the strong chemical bond to lower the energy of the materials and achieve a more stable state. This study could help to deepen the understanding of martensitic phase transition and the exploration of novel materials for potential technical applications.