Abstract Ni–Mn–Ga shape memory alloys are employed for applications in actuators and sensing devices. These alloys exhibit ferromagnetic shape memory effect with large reproducible strains in moderate magnetic fields. This work presents a study of the effect of composition and annealing treatment on the microstructure and magnetic properties in Mn-rich off-stoichiometric Ni–Mn–Ga alloys. Modulated martensitic structure (c/a 22 at.%) revealed austenitic structure at room temperature. Ferromagnetic nature of the alloys was confirmed by the magnetization curves. It is demonstrated that a maximum of 400 parts per million strain was measured in the alloy with 7 M martensitic structure at room temperature.