Effect of martensite morphology on damping capacity and hardness of Fe-Ni-C martensitic alloys were studied. The morphologies of martensite such as lath, butterfly, lenticular and thin plate were prepared by adjusting nickel content and austenite grain size. The hardness increased in order of lath, lenticular, thin plate, butterfly. The damping capacities of the lath and butterfly martensites were higher than those of the other two morphologies, indicating that the dislocation substructure is more effective in the damping capacity than the twin substructure. Especially, the butterfly martensite showed the highest damping capacity among these morphologies because of presence of not tangled but free dislocations in there.