Applications of shape memory alloys require them have the ability to undergo back and forth through the solid-to-solid martensitic phase transformations for many times without degradation of properties (termed “reversibility”). Low hysteresis and small migration of transformation temperature under cycling are the macroscopic manifestation of high reversibility. By the crystallographic theory of martensite, materials with certain crystalline symmetry and geometric compatibility tend to form no-stressed transformation interface and have exce-llent functional stability. In the theory, several conditions that corresponding to extremely low hysteresis are specified. Stronger compatibility conditions which lead to even better reversibility have been theoretically proposed, those conditions are called “cofactor conditions”. Recently, for the first time, experimental results find out the shape memory alloy Au₃₀Cu₂₅Zn₄₅ that closely satisfy the cofactor conditions. Enhanced reversibility with thermal hysteresis of 2.045 ℃, and the unusual riverine microstructure are found in Au₃₀Cu₂₅Zn₄₅. However, their studies are limited to crystallographic analysis, and haven't provided enough details of microstructural evolution in martensitic transformation. Furthermore, it is the evolution of microstructures that leads to an extremely low thermal hysteresis in this alloy. Thus, making clear of evolution of microstructures in martensitic transformation in this alloy is of great importance. So, in the present work, the phase field method was applied, in which the microstructure is described by Landau theory of martensitic transformation, Khachaturyan-Shatalov's phase field microelasticity theory, and thermodynamics gradient to study the microstructural evolution of martensitic transformation in Au₃₀Cu₂₅Zn₄₅, trying to figure out pathway of formation of the unusual microstructure with satisfying cofactor conditions. The simulation results show that during the martensitic transformation, quad-junctions composed of four different variants are formed. These junctions grow layer by layer, and the previously formed layer has larger size, thus leading to the formation of the experimentally reported “riverine” microstructure of martensite in Au₃₀Cu₂₅Zn₄₅. Further analysis based on the crystallographic theory of martensitic transformation shows that in Au₃₀Cu₂₅Zn₄₅ 6 groups of variants can form such kind of quad-junction, and each group of variants can form 4 kinds of type 1/type 2 twin pairs and two kinds of compound twin pairs. All of the quad-junctions in this transformation are composed of four of those 6 twin pairs in each variant group, and the twin walls of these four twin pairs are perpendicular to each other.