We report a systematic study of a new class of melt‐extracted Ni49.7Mn25.0Ga19.8Fe5.5 polycrystalline microwires in terms of fabrication, microstructural characterization, and evaluation of shape memory effects (SMEs). The as‐extracted microwire has enhanced ductility due to its fine grains with diameters of 1–3 µm. The total strain in its martensite state reached 2.14% as loading at 350 MPa and 100% plastic deformation strain recovery was achieved after heating process. During thermo‐cycling tests, a fully recoverable transformation strain of 1.5% was obtained under a tensile bias‐stress of 468 MPa. It can be therefore concluded that Fe‐doped microwires display the least strain dependence on stress compared with other alloys such as NiTi and NiMnGa, and could be useful in devices required constant stress output.