Phase field approach to coupled evolution of martensitic phase transformations (PTs) anddislocation is developed. A fully geometrically nonlinear formulation is utilized. The finite element method procedure is developed and applied to study the hysteretic behavior and propagation of an austenite (A)–martensite (M) interface with incoherency dislocations, the growth and arrest of martensitic plate for temperature-induced PT, and the evolution of phase and dislocation structures for stress-induced PT. A similar approach can be developed for the interaction of dislocations with twins and diffusive PTs described by Cahn-Hilliard theory