A nitrided layer was formed on the NiTi shape memory alloy (SMA) after being irradiated by a continuous wave Nd-YAG laser in a N2 environment. With optimum process parameters, a compact laser modified gradient layer reinforced with fine TiN particles was achieved. Electrochemical measurements of the laser gas nitrided layer on the NiTi SMA showed that the corrosion potential and the breakdown potential were increased while the corrosion current was decreased as compared with the untreated the NiTi SMA. The polarization resistance of the laser gas nitrided layer on the NiTi SMA was increased significantly while the capacitance was decreased. Based on the EIS spectra, a simple model and an equivalent circuit were proposed to describe the electrode-electrolyte interfaces.