The damping capacity and strength of Fe-6Al-25/34Mn alloys have been studied for the development of new materials with high strength and damping capacity. Particularly, the effect of α’(including α) and ε martensite phases, which constitute the microstructure of cold rolled Fe-Al-Mn alloys, has been investigated in terms of the strength and damping capacity of the alloys. The damping capacity rises with increasing the degree of cold rolling and reveals the maximum value at 32% reduction. The damping capacity is strongly affected by the volume fraction of ε martensite. The phases such as α’ and austenite(γ) on damping capacity. Considering that tensile strength increases and elongation decreases with increasing the volume fraction of α’-martensite, it is proved that tensile strength is mainly affected by the amount of α’martensite.