The effect of grain size on the martensitic transformation in Ni42Ti shape memory alloy has been studied. The kinetics of grain growth has been evaluated and the influence of different grain sizes on the transformation temperatures and the thermodynamic magnitudes has been reported. Image analysis and flow calorimetry techniques have been used. The study shows that grain boundaries favour the martensitic transformation and at the same time obstruct retransformation. Enthalpy and entropy variations are independent of grain size, but elastic energy decreases with the grain size.