The present study reports on the impact of abnormal grain growth (AGG) on the microstructural evolution following electron beam (EB) welding of Fe–Mn–Al–Ni shape memory alloy (SMA). Polycrystalline sheet-like material was EB-welded and a cyclic heat treatment, studied in previous work, was conducted for inducing AGG and a bamboo-like microstructure, respectively. Optical and electron microscopy were carried out to characterize the prevailing microstructure upon cyclic heat treatment. For characterization of the functional properties following AGG, a load increase test was conducted. The current results clearly show that good shape memory response can be obtained in Fe–Mn–Al–Ni SMA upon EB welding and subsequent post-heat treatment. These results further substantiate the potential use of conventional processing routes for Fe–Mn–Al–Ni SMA.