Effect of chemical component on shape memory effect (SME) of Fe-Mn-Si-Ni-C-RE shape memory alloys was studied by bent measurement, thermal cycle training, SEM etc. Results of study indicate that the alloys with high Mn content (25%) appeare better SME, especially in lower strain. SME improves evidently when Si is higher content, especially it′s range from 3% up to 4%.But brittleness of Fe-Mn-Si-Ni-C-RE alloy increases by increasing the Si content. SME of the alloy is weakening gradually as carbon content increases under small strain (3%). But in the condition of large strain (above 6%), SME of the alloy whose carbon content ranges from 0.1% to 0.12% shows small decreasing range, especially of alloy with the addition of compound RE.