The functional fatigue behavior of Ti50Ni30Cu20 (at. %) shape memory alloy was investigated after subjecting to cold working and heat-treatment. Copper addition modified the phase transformation behavior with the introduction of B19-phase in the binary NiTi alloy. It was observed that aging after annealing and thermal cycling (-60 to 100)°C significantly effect the transformation temperatures. Observations in optical microscope and scanning electron microscope reveal inhomogeneity in the composition in the form of coarse Cu+Ti-rich precipitates. Investigations under transmission electron microscope showed growth of internally twined martensitic plates in solution treated sample. The phase transformation temperatures were determined with differential scanning calorimeter. The transformation temperatures were shifted towards lower side. Dislocations introduced during cold working and fine precipitation after aging, may be responsible for this change in the transformation characteristics of the material.