Single crystals of ferromagnetic shape memory alloys (MSMA) exhibit magnetic field and stress induced strains via energy dissipating twinning. Embedding single crystalline MSMA particles into a polymer matrix could thus produce composites with enhanced energy dissipation, suitable for damping applications. Composites of ferromagnetic, martensitic or austenitic Ni-Mn-Ga powders embedded in a standard epoxy matrix were produced by casting. The martensitic powder composites showed a crystal structure dependent damping behaviour that was more dissipative than that of austenitic powder or Cu-Ni reference powder composites and than that of the pure matrix. The loss ratio also increased with increasing strain amplitude and decreasing frequency, respectively. Furthermore, Ni-Mn-Ga powder composites exhibited an increased damping behaviour at the martensite/austenite transformation temperature of the Ni-Mn-Ga particles in addition to that at the glass transition temperature of the epoxy matrix, creating possible synergetic effects.