NiTiSMA/FC composites have been prepared by depositing ferroelectric ceramics films on NiTi shape memory alloy substrate with the sol-gel method. Heterojunction structure of the composites has been characterized by using X-ray diffraction and scanning electron microscope. The differences of the damping capacities between NiTiSMA/FC composites and NiTiSMA substrates have been tested by the Dynamic Mechanical Analyzer. The results show pure perovskite structure could be obtained in the FC films part of NiTiSMA/FC composites sintered at 650oC. The transitional TiO2 layer produced in-situ by the oxidation of the surface of the NiTiSMA substrate improves the combined function between the ceramic film and NiTiSMA substrate. When the temperature is lower than 20oC, the tanδ of NiTiSMA/FC composites is stabilized at 3.5%, the vibration frequencies (within 0.33-10Hz) have a small effect on damping capacities. Within the temperature of 20-40oC, there is a tanδ peak up to 5.0%.The damping capacities of NiTiSMA/FC composites are better than the pure NiTiSMA materials.