The　stress-induced　martensitic　transformation　in　textured　polycrystalline　NiTi　shape　memory　sheet　specimens　were　revealed　to　occur　as　a　way　of　formation　the　inhomogeneous　Luders-like　deformation　bands　(LDB).　With　increasing　strain,　the　LDB　propagated　by　nucleating　new　stress-induced　martensite　in　a　transition　zone　which　is　between　the　martensitic　and　austenitic　deformation　areas.　The　tensile　tests　on　the　specimens　which　were　annealed　at　various　temperatures　indicate　that　the　formation　of　LDB　is　a　microstructure-correlated　phenomenon.　The　formation　of　LDB　is　a　stress-induced　catalytic　martensitic　transformation　among　neighboring　grains　and　leads　to　the　formation　of　a　chain-like　belt-zone　of　martensite.　By　crystallographic　analysis,　it　was　demonstrated　that　the　formation　of　LDB　was　strongly　correlated　with　the　grains＇　orientation　distribution,　i.e.,　texture　related.