Precipitation behavior has been studied in NiTi-based ordered alloy using transmission electron microscopy. The hardness after solution treatment is high in NiTi alloy suggesting the large contribution of solid solution strengthening in this alloy system. However, the amount of age hardening is not large as compared to the large microstructural variations during aging. At the beginning of aging, the $L2_1-type$ $Ni_2AlTi$ precipitates keep a lattice coherency with the NiTi matrix. By longer periods of aging $Ni_2AlTi$ precipitates lose their coherency and change their morphology to the globular ones surrounded by misfit dislocations. Misfit dislocations, which are observed on {100} planes of H-precipitates have the Burgers vector of a <100> with a pure edge type. The lattice misfits of $NiTi-Ni_2AlTi$ system is estimated from the spacings of misfit dislocations to be 1.3% at 1273 K. The lattice misfits decrease with increasing aging temperature in this system.