Magnetic shape memory (MSM) alloys or ferromagnetic shape memory alloy (FSMA) materials discovered by Ullakko et al (1996 Appl. Phys. Lett. 69 1966 have received increasing interest, since they can produce a large strain with rather high frequencies without a change in the external temperature. These materials have potential for actuator and sensor applications. MSM materials exhibit giant magnetic field induced strain (MFIS) based on the rearrangements of the crystallographic domains (twin variants). The magnetization energy of the material is lowered when such twin variants that have the easy axis of magnetization along the field start to grow due to twin boundary motion. Currently, the best working MSM materials are the near-stoichiometric Ni 2 MnGa Heusler alloys in which the properties are highly composition dependent. Their modulated martensitic structures, 5M and 7M, show 6% or 10% response respectively in a magnetic field less than 800 kA m −1 . The MSM service temperature of the 5M alloys is between 150 and 333 K, and the optimal frequency region is up to 500 Hz. The fatigue life of the MSM elements has been shown to be at least 50 × 10 6 shape change cycles. This paper reviews the research work carried out at