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Porous Ti-50.5at.%Ni shape memory alloy (SMA) samples with a range of porosities were prepared by spacer sintering. The porous structure of the alloy was examined using scanning electron microscopy (SEM). The phase constituents of the porous TiNi alloy were determined by X-ray diffraction (XRD). The shape memory behavior of the porous TiNi alloy was investigated using loading–unloading compression tests. Results indicate that the porous TiNi alloy exhibits superelasticity and the recoverable strain by the superelasticity decreases with the increase of porosity. After a prestrain of 7%, the superelastically recovered strains for the porous TiNi alloy samples with porosities of 46%, 59%, 69% and 77% are 2.0%, 1.8%, 1.5% and 1.3%, respectively. The pores in the TiNi alloy samples cause stress/strain concentration, as well as crack initiation, which adversely affect the shape memory behavior of the porous TiNi alloy.