NiTi shape memory alloys hold significant potential for advanced applications in biomedical and high-performance engineering fields, making the development of reliable and efficient manufacturing technologies increasingly critical. The face milling process of NiTi alloys requires thorough investigation, both as a pre-processing operation-particularly in the context of assessing technological heritage-and as a standalone technique. This study investigated the face milling performance of austenitic Ni56.5Ti43.5 (wt.%) shape memory alloy as a function of cutting conditions in dry machining with uncoated cemented carbide cutting inserts. Tests were performed at different cutting speeds (20, 35, and 50 m/min), feed rates (0.05, 0.1, and 0.15 mm/tooth), and axial depths of cut (0.5, 0.75, and 1.0 mm). The article describes the cutting force components, temperature, surface roughness of the milled surface, tool wear, microstructure, and depth of the machining-induced layers, as well as the chip morphology. Cross-section analysis revealed a heterogeneous surface layer with a predominant martensite content and a deeper subsurface layer with irregular, deep martensite needles. The influence of cutting conditions on the depth of each of these layers is discussed. The failure modes of the cutting insert and the wear mechanism are determined. The findings deepen the understanding of the thermo-mechanical responses of NiTi during face milling, especially the extensive phase transformations that occur in the surface layer. The study emphasizes the importance of identifying and removing the mechanically affected layer in post-machining steps to preserve the alloy's functional properties.