X-ray powder diffraction, permeability, magnetization and differential scanning calorimetry measurements were carried out on the magnetic shape memory alloys Ni2MnGa1−xCux (0 ≤ x ≤ 0.25). On the basis of the experimental results, the phase diagram in the temperature– concentration plane was determined for this alloy system. The determined phase diagram is spanned by the paramagnetic austenite phase (Para-A), paramagnetic martensite phase (Para-M), ferromagnetic austenite phase (Ferro-A), ferromagnetic martensite phase (Ferro-M) and the premartensite phase. It was found that the magnetostructural transition between the phases Para-A and Ferro-M can occur in the concentration region 0.12 < x ≤ 0.14 and that Ni2MnGa1−xCux has the characteristics of the phase diagram similar to those of the phase diagrams of Ni2+xMn1−xGa and Ni2Mn1−xCuxGa. In order to understand the phase diagram, the phenomenological free energy as a function of the martensitic distortion and magnetization was constructed and analyzed.