This paper presents the mechanical and tribological characteristics of the NiTi shape memory alloy (SMA) fabricated by powder metallurgy. This material has prominent applications in micro-electromechanical systems, medical implants, actuator, space and aerospace industries, etc. In every field, wear characteristics plays a dominating role. In present work dry-abrasion wear behavior is determined for NiTi alloy by varying binder percentage. With increasing binder percentage from 2.5 to 15 %, density decreases from 6.5 to 5.3 g/cm3 while porosity increases from 19 % to 51 %. Increasing rotational speed and binder percentage at a constant load the wear rate increases in the NiTi alloy. Due to the presence of hard particles, NiTi exhibits a very small wear rate. The coefficient of friction is also computed for the alloys in present research work. Scanning electron microscopy (SEM), transmission electron microscopy (TEM), and X-ray diffraction were used for the investigation of surface morphology and phases in the NiTi alloy.