Shape-memory alloys have the largest energy output per unit volume per cycle of known actuator systems [1]. Unfortunately, they are temperature activated and hence, their frequency is limited in bulk specimens. However, this is overcome in thin films; and hence shape-memory alloys are ideal actuator materials in micromachines[l]. The heart of the shape-memory effect lies in a martensitic phase transformation and the resulting microstructure. It is well-known that microstructure can be significantly different in thin films as compared to bulk materials. In this paper, we report on a theory of single crystal martensitic this films. We show that single crystal films of shape memory material offer interesting possibilities for producing very large deformations, at small scales.