The effect of the microstructure on the shape recovery in stainless Fe-8Mn-5Si-13Cr-6Ni-12Co shape memory steel (SSMS) was evaluated using tensile tests and reversion temperature of 600°C for a pre-strain of 4%. The tests were performed for a solution treated and annealed conditions at different temperatures after wire drawing of 57% area reduction. The best total shape recovery (TSR) was 83% for a sample deformed and annealed at 850°C. It was concluded that the elastic (or, superelastic) shape recovery (ESR) is high when the austenitic matrix strength is high surpassing the value of shape recovery due to memory effect (SR) and once the austenitic matrix becomes softer, the contribution of SR increases and that of ESR decreases.