This Small Business Innovation Research Phase I project will development a smart seal using shape memory alloy technology (SMA) combined with elastic foundation bedding. The use of active control allows corrections to take place during the operation. Active control protects against seal failure and preserves the tribological characteristics. The objective is to develop a class of non-contacting mechanical annular seals (e.g. labyrinth, smooth bushing, and step) where their clearance can be actively controlled. The commercial benefits from this application will be in compressors and steam/gas turbines. This project will have a significant advantage over existing types of labyrinth seals by reducing the leakage rates, extending operational life, decreasing required maintenance, decreasing fuel consumption or electric power of the machinery and will lessen contamination of the environment.