The microstructure and properties of the oxide particle dispersion strengthened composite fabricated by internal oxidation method have been studied. Using nitrogen base atmosphere and a new process flow we can improve the quality of the MMCs and decrease the cost of the composites. The size of alumina is in the nanometer order of magnitude and the particles are well distributed. Under the condition of having good electrical conductivity, the composites have 1to 2 times higher mechanical properties than those of pure Cu. The microstructure and properties of the oxide particle dispersion strengthened composite fabricated by internal oxidation method have been studied. The size of alumina is in the nanometer order of magnitude and the particles are well distributed. Under the condition of having good electrical conductivity, the composites have 1to 2 times higher mechanical properties than those of pure Cu.