The invention discloses low-manganese iron-based shape memory alloy, which belongs to the field of memory alloy. The low-manganese iron-based shape memory alloy is characterized by comprising the following components in percentage by weight: 16 percent of Mn, 3-5 percent of Si, 5 percent of Ni, 0.1 percent of C, 0.4-1.0 percent of composite rare earth additive and the balance of Fe. The alloy is melted in a medium frequency induction electric furnace after being prepared; and when the temperature of the molten alloy is 1,530-1,550 DEG C, the molten alloy is cast into a cast ingot of phi 80*150 mm after slagging. The cast ingot which is cast is filled in a box type resistance furnace to perform annealing, wherein the annealing temperature is 1,080-1,120 DEG C and the time is 24 hours; forging and striking are performed after annealing; the forging and striking temperature is 1,000-800 DEG C; the cast ingot is forged and struck to be 10 mm*80 mm*90 mm and then is linearly cut into a specimen of 1 mm*10 mm*90 mm. The shape memory recovery rate of the cut specimen is determined by using a bending deformation method.