Abstract. The changing law of microstructure and mechanical properties of low cost TC4 titanium alloy during deformation and annealing was investigated. The results show that the coarse cast dendritic structure of slab is broken to form rod-like or equiaxial Į+ȕ transformed microstructure by rolling deformation. After annealing, the microstructure of plate becomes uniform, moreover, the flake secondary Į separates out and the amount of primary Į phase decreases with the increase of annealing temperature and gradually tends to equiaxization. The tensile strength and ductility of plate show an increased tendency with deforming. When annealing temperature increases, the tensile strength firstly increases, and then reaches the maximum value at 820 °C, after that, it gradually decreases. The yield strength and reduction of area show decreasing trend as a whole, but the elongation has a little change. The plate has preferable matching of strength and ductile after annealing treatment at 750~820 °C for 1h in air.