Melt spinning technique was used to synthesize Ni2MnGa ferromagnetic shape memory alloy ribbons. Transmission electron microscopy (TEM) and atomic force microscopy (AFM) analysis of the ribbon synthesized at lower wheel speed (20 m/s) reveal the formation of very fine clusters of austenitic phase of Ni2MnGa. However at higher wheel speed (30 m/s) the formation of martensite and nanoparticles of Ni2MnGa with a size range of 10-20 nm in the amorphous matrix is observed. Also an amorphous phase was observed at higher wheel speed in some areas of the ribbon. Annealing (1000 A degrees C, 1 h) of the ribbon synthesized at higher wheel speed resulted in martensite and gamma (gamma) phases. Amorphous phase, Ni2MnGa nanoparticles, and the martensite phase are analyzed in detail.