This paper presents experimental results relating the initial austenite grain size to bulk hardness, compressive yield stress (σ_0.2%) and volume fraction of stress-induced ε martensite. It is shown that the bulk hardness obeys quite closely the Hall-Petch equation while the yield stress, σ_0.2%, decreases with decrease of grain size, indicating that the induction of ε martensite mechanically is easier for the materials with finer grains. This fact is corroborated by the observed increase of the volume fraction of stress-induced ε martensite with decrease of grain size. Inversely, after shape recovery heating, the volume fraction of residual stress-induced ε martensite increases as the grain size increases, e.g. the increase in grain size hinders the reversible martensitic transformation.