Effects of Cr and Ni addition on damping capacity, mechanical property, and corrosion resistance of Fe-17%Mn martensitic alloy have been studied. Martensite start temperature($M_{S}$) of the alloy decreases linearly with increasing Cr and Ni contents up to 15%. The damping capacity decreases gradually from 27 to 22% in specific damping capacity(SDC) with increasing Cr and Ni contents from zero to 10%, and decreases rapidly with further Cr and Ni content in Fe-17%Mn alloy. The tensile strength of the alloy maintains a level of 60 $kgf/mm^{2}$ regardless of Cr content with an elongation of 20 to 25%. But, in case of Fe-17%Mn-x%Ni alloy, the tensile strength decreased rapidly with the Ni content of above 10% because of austenite morphology. Immersion test in 5% NaCl solution leads to the result that the corrosion resistance of the alloy becomes excellent above 10% Cr. From the above results, it is concluded that the optimum Cr content to improve the mechanical property and corrosion resistance of the alloy in 5%NaCl solution with a lesser decrease in damping capacity is about 10%. In the case of 5% $H_{2}SO_{4}$ condition, the Fe-17%Mn-10%Ni is an optimum alloy.