Several ternary Fe-Pt-Pd alloys with the compositions of Fe-(25-x) at% Pt-x at% Pd and Fe-y at% Pt-(30-y) at% Pd were investigated to study their phase transformations in order to develop ductile ferromagnetic shape memory alloys appearing around room temperature. Alloys were prepared by vacuum floating induction melting, followed by hot rolling at 1000°C and homogenization at 900° C. Homogenized alloys were heat treated at 650°C for various periods of time in vacuum for atomic ordering in encapsulated quartz tubes, and quenched into iced water. It was found that in general the transformation temperatures changes with heat treatment time. In the case of Fe-23at.%Pt-2at.%Pd, Ms temperature increased and the difference between Ms and Mf increased with increasing heat treatment time, which was different from Fe3Pt where a degree of order becomes one. As heat treatment time increased, there was a tendency in that a strong first-order transformation in the disordered state was replaced by a weak first-order transformation. The Curie temperature of the alloys rose drastically with the addition of Pd, along with the transformation temperatures. Fe-23at.%Pt-2at.%Pd showed good shape memory effect after 8 hours of heat treatment at 650°C. This alloy showed much better shape recovery than any other binary Fe-Pt and Fe-Pd shape memory alloys.