In this investigation, Ni₄₇Mn₄₀Sn₁₃ ferromagnetic shape memory alloy was prepared by mechanical alloying. The metal powders were ball milled in argon atmosphere for 20 hours. X-ray diffraction pattern confirmed formation of crystalline structure of Heusler alloy. As-milled powder samples were sealed in quartz tubes under high vacuum and subjected to heat treatments at 950°C for different time durations. Then, the effect of isothermal ageing on structural, magnetic and electrical properties of samples was investigated. Results of electrical resistance displayed a metal-like behavior around martensitic transformation. The results showed that 16 hours of annealing was the optimal time for producing this alloy which could be an appropriate candidate for magnetic refrigerant.