<p>In this work, plane strain finite element simulations are conducted to analyze the growth of a circular void ahead of a notch tip in a shape memory alloy subjected to combined modes I and II loading, under small-scale yielding and transformation conditions. This study is motivated by a recent experimental investigation which showed predominantly dimple fracture occurring near a crack tip in a NiTi shape memory alloy as the mode II component is increased. An isotropic constitutive model that captures the coupled nature of superelasticity and plasticity is employed in the present simulations. The material is taken to be initially in the austenite phase above the austenite finish temperature. Also, computations are performed for a reference elastic-plastic material having austenite properties to understand the role of phase transformation on near-tip void growth and coalescence. It is found that the energy release rate at coalescence of the void and the notch, Jc, decreases with enhancement in mode II component for both materials, which corroborates with experimental observations. It is traced to faster strain localization mediated by intense shearing in the ligament bridging the notch tip and the void. Furthermore, phase transformation plays a benevolent role by impeding plastic strain development in the ligament resulting in 30 to 35% higher Jc compared to the reference elastic-plastic material, irrespective of mode mixity. It also leads to slower void growth especially at later stages of loading. A systematic analysis of inelastic strain, martensite volume fraction and hydrostatic stress/triaxiality prevailing in the ligament and in the region around the void is conducted to clearly understand the above trends.</p>