Abstract: Microstructural changes taking place during the heat treatment of cold-worked NiTi alloy are of key interest in shape memory alloy technology, since they are responsible for setting the austenite shape and functional properties of the heat-treated alloy. In this work, microstructural evolution during non-conventional electropulse heat treatment of thin NiTi filaments was investigated in a unique high-speed in situ synchrotron X-ray diffraction experiment with simultaneous evaluation of the tensile force and electrical resistivity of the treated wire. The in situ results provide direct experimental evidence on the evolution of the internal stress and density of defects during fast heating from 20 °C to ∼700 °C. This evidence is used to characterize a sequence of dynamic recovery and recrystallization processes responsible for the microstructure and superelastic functional property changes during the electropulse treatments.