Abstract: Due to unique properties of NiTi shape memory alloys such as high corrosion resistance, biocompatibility, super elasticity and shape memory behavior, NiTi shape memory alloys are suitable materials for medical applications. Although TiO2 passive layer in these alloys can prevent releasing of nickel to the environment, high nickel content and stability of passive layer in these alloys are very debatable subjects. In this study a NiTi shape memory alloy with nominal composition of 50.7 atom% Ni was investigated by corrosion tests. Electrochemical tests were performed in two physiological environments of Ringer solution and NaCl 0.9% solution. Results indicate that the breakdown potential of the NiTi alloy in NaCl 0.9% solution is higher than that in Ringer solution. The results of Scanning Electron Microscope (SEM) reveal that low pitting corrosion occurred in Ringer solution compared with NaCl solution at potentiostatic tests. The pH value of the solutions increases after the electrochemical tests. The existence of hydride products in the X-ray diffraction analysis confirms the decrease of the concentration of hydrogen ion in solutions. Topographical evaluations show that corrosion products are nearly same in all samples. The biocompatibility tests were performed by reaction of mouse fibroblast cells (L929). The growth and development of cells for different times were measured by numbering the cells or statistics investigations. The figures of cells for different times showed natural growth of cells. The different of the cell numbers between the test specimen and control specimen was negligible; therefore it may be concluded that the NiTi shape memory alloy is not toxic in the physiological environments simulated with body fluids.