The effect of thermal cycling of the Ti - 49.8 at. % Ni alloy deformed by rolling at 500 оС on dilatation of the material was investigated. It was shown that R → B2 and B19' → B2 phase transformations take place during heating due to retaining of R-phase at the lowest temperature of cycling. The evolution and subsequent stabilization of two-way shape memory effect (TWSME) upon thermal cycling are caused by decreasing of the residual B19'- martensitic phase formed during rolling. It was revealed that recoverable strain of the alloy doesn’t exceed 0.8 % even after forty cycles.