Cu-0.15Zr (wt.%) alloy with uniform and fine microstructure was fabricated by rapid solidification followed by hot forging. Evolution of microstructure, mechanical properties and electrical conductivity of the alloy during elevated-temperature annealing were investigated. The alloy exhibits good thermal stability, and its strength decreases slightly even after annealing at 700 °C for 2 h. The nano-sized Cu₅Zr precipitates show significant pinning effect on dislocation moving, which is the main reason for the high strength of the alloy. Additionally, the large-size Cu₅Zr precipitates play a major role in retarding grain growth by pinning the grain boundaries during annealing. After annealing at 700 °C for 2 h, the electrical conductivity of samples reaches the peak value of 88% (IACS), which is attributed to the decrease of vacancy defects, dislocations, grain boundaries and Zr solutes.