The Cu-12wt.%Ag Microcomposite was prepared and the influence of final annealing temperature on the microstructure, mechanical properties and conductivity were investigated. The recrystallization at temperatures lower than 300℃ occurs only within the fibrous phases. The strength, hardness and conductivity notably change with annealing temperatures at 200-400℃. The fibrous structure annealed at lower temperatures maintains higher strength but lower conductivity. The equiaxial structure formed at higher annealing temperatures shows higher conductivity but lower strength. An optimal combination of the strength and conductivity can be obtained by annealing at 300℃ to induce recrystallizing and retain still the filamentary morphology formed in the strong drawing.