The dynamic recrystallization of a Fe-Mn-Si based shape memory is studied for the first time, under constant and variable thermo-mechanical conditions. The effect of strain rate and deformation temperature on the microstructural evolution is investigated, considering that the grain size distribution can reduce or increase drastically the shape memory effect. The dynamic recrystallization behavior and the processability are analyzed from hot compression tests at both constant and variable strain rate and temperature, using a Gleeble 3800 machine. The microstructures were characterized by EBSD. The results showed that dynamic recrystallization and the resulting microstructure are strongly dependent of the thermomechanical path.