Kinetical, morphological, crystallographical and thermal characteristics of thermally induced martensite in an Fe-30%Ni-1%Pd alloy has been studied by scanning electron microscopy (SEM), transmission electron microscopy (TEM), differential scanning calorimetry (DSC) and X-ray diffraction method. Kinetics of transformation was found to be as athermal. SEM and TEM observations and X-ray method revealed α (bcc) martensite formation in the austenite phase of alloy by thermal effect. The crystallographic orientation relationship between austenite and α (bcc) martensite was found to be having Kurdjumov-Sachs (K-S) type relationship. In addition, the lattice parameters of austenite and martensite phases were calculated from X-ray diffraction patterns.