The microstructural evolution of cold-rolled aluminum alloy 3003 during annealing was investigated by means of micro-hardness measurement, electrical resistivity measurement, optical microscopy and transmission electron microscopy. The interaction of recrystallization and precipitation of aluminum alloy 3003 was also discussed. The results show that the recrystallized grain size of cold-rolled aluminum alloy 3003 is strongly affected by precipitation during annealing. When precipitation occurs prior to recrystallization at low temperature(300 ℃), the grain structure becomes coarse, and the precipitation process is affected by the presence of lattice defects, i.e. high cold reduction results in a large number of precipitates. When annealing at 500 ℃, however, for the recrystallization is prior to precipitation, the precipitation is independent of cold deformation reduction and a fine, equiaxed grain structure is obtained.