An attempt to improve the functional characteristics of a degradable Fe-Mn-5Si shape memory alloy by means of structure refinement by equal-channel angular pressing (ECAP) was made. In the course of ECAP, an austenitic ultrafine-grained structure was obtained. In shear bands with a thickness of 301 ± 31 nm, twins 11 ± 1 nm in size were formed. Due to the resulting structure, the tensile strength was doubled up to 1419 MPa, and the yield strength was increased up to 1352 MPa, four times higher compared with the annealed state. Dynamic indentation tests revealed a decrease in Young’s modulus by more than 2.5 times after ECAP compared to values measured in the annealed state. The results of the study of hemolytic and cytotoxic activity in vitro, as well as the local and systemic reactivity of the body of laboratory animals after implantation of the test samples indicate the biocompatibility of the alloy after ECAP. Biocompatibility, high specific strength and low modulus of elasticity open prospects for Fe-Mn-5Si alloy after ECAP to be used for the production of degradable implants that can effectively provide the fastening function in osteoreconstruction.