The influences of 2.5wt% Mn addition on the microstructure and mechanical properties of the Cu-11.9wt%Al-3.8wt%Ni shape memory alloy (SMA) were studied by means of scanning electron microscopy (SEM), transmission electron microscopy (TEM), and differential scanrung calorimeter (DSC). The experimental results show that Mn addition influences considerably the austenite-martensite transformation temperatures and the kind of martensite in the Cu-Al-Ni alloy. The martensitic transformation changes from a mixed β_1→β_1+γ_1 transformation to a single β_1→β_1 martensite transformation together with a decrease in transformation temperatures. In addition, the observations reveal that the grain size of the Cu-Al-Ni alloy can be controlled with the addition of 2.5wt% Mn and thus its mechanical properties can be enhanced. The Cu-Al-Ni-Mn alloy exhibits better mechanical properties with the high ultimate compression strength and ductility of 952 MPa and 15%, respectively. These improvements are attributed to a decrease in grain size. However, the hardness decreases from Hv 230 to Hv 140 with the Mn addition.