The effects of carbon content on the austenite stability and strain-induced transformation of nanocrystalline Fe-11% Ni alloys were investigated using X-ray analysis and mechanical tests. The nanocrystalline FeNiC alloy samples were rapidly fabricated using spark plasma sintering because of the extremely short densification time, which not only helped attain the theoretical density value but also prevented grain growth. The increased austenite stability resulted from nanosized crystallites in the sintered alloys. Increasing compressive deformation increased the volume fraction of strain-induced martensite from austenite decomposition. The kinetics of the strain-induced martensite formation were evaluated using an empirical equation considering the austenite stability factor. As the carbon content increased, the austenite stability was enhanced, contributing to not only a higher volume fraction of austenite after sintering, but also to the suppression of its strain-induced martensite transformation.