The magnetic phase transition and magnetocaloric effect are investigated on ε-(Mn0.83Fe0.17)3.25Ge compound. A large positive magnetic entropy change ΔSM is observed, which is accompanied with a field-induced metamagnetic transition from a collinear to a triangular antiferromagnetic configuration in this antiferromagnetic compound. The maximum value of ΔSM is 11.6 J/kg K at 93 K for a magnetic field change of 7 T. The study on systems with antiferromagnetic phases may open an important field in searching new materials for magnetic refrigeration.