A heat-resistant dispersion-strengthening nano-Al2O3/Cu composite with high strength and high electric conductivity was fabricated in a multiplex medium. The internal oxidation product, microstructures and properties of the composite,and the process flow were systematically studied. It is confirmed that this new technique simplifies the process and improves the properties of the composite. X-ray analysis indicates that the alumina particles formed during internal oxidation consist of a large mount of γ-Al2O3 and a certain amount of θ-Al2O3 and α-Al2O3,TEM observation shows that the obtained γ-Al2O3 nano-particles are uniformly distributed in the copper grains; their mean size and space between particles are 7 nm and 30 nm, respectively. The main properties of the composite with 50% cold deformation are as follows: the electric conductivity is 51 MS/m (87%IACS), σb = 628 MPa, and the hardness is HRB86. After annealing at 1273 K, all or most of the above properties remain, and the microstructures are still dependent on elongated fiber-form grains.