The work addresses two main questions that have baffled the shape memory research community. Firstly, the superb ductility of B2-NiTi cannot be solely attributed to slip on {0 1 1} planes, because there are not a sufficient number of independent slip systems under arbitrary deformations. We show unequivocally, upon diffraction measurements and local strain field traces, that deformation twinning on {1 1 4} planes that can provide additional systems to accommodate plastic flow is activated. Secondly, the slip direction on the {0 1 1} planes has not been established in NiTi with certainty. It is proved precisely to be in  0 0 1  direction based on crystallographic shear analysis producing the specific strain tensor components (measured at mesoscale with digital image correlation, DIC). Based on the single-crystal experiments, the CRSSs (critical resolved shear stress) are established as 250 and 330 MPa for slip and twinning, respectively. The results have implications in devising correct crystal plasticity formulations for shape memory alloys.