The application of laser powder bed fusioned NiTi shape memory alloys is limited due to low ductility, defects and uncontrollable shape memory performance. In this study, 1 wt.% ZrH2 powder was added into NiTi alloyed powder to form a NiTi/Zr metal matrix composite. The influence of processing parameters on the structural integrity, mechanical properties and the shape memory performance of NiTi/Zr metal matrix composite. It was found that Zr doping reduced balling effect under suitable parameters, thus reducing lack of fusion defects. The Zr particles in the NiTi matrix varied from pure Zr particles, precipitation and solid solution according different processing parameters. Differential scanning calorimetry (DSC) and tensile test results show that the as-fabricated NiTi/Zr composites produced by suitable parameters have higher strength and ductility than the NiTi alloys. Meanwhile, the shape memory performance, in terms of the martensite transformation peak temperature, could be altered by processing parameters. This study demonstrated that using the processing parameters to control the status of doped high melting element could be an effective method to additively manufacture low processibility materials.