This paper presents results on the microstructure and mechanical properties of a new low-cost titanium alloy Ti-5Al-1.5Mo-1.8Fe after different forging processes. The β phase transformation temperature of this alloy was 950 °C. In this study, the forging temperatures were designed at 920 °C and 980 °C, and the deformation degree ranged from 20% to 60%, with an interval of 20%. This study investigated the impact of the equiaxed α phase and shape of the lamellar microstructure on the tensile characteristics and fracture toughness of an alloy. The research employed a microstructure analysis and static tensile testing to evaluate the effect of forging temperatures and degree of deformation on the microstructure features. The findings revealed that forging temperatures could modify the microstructure characteristics, and the degree of deformation also affected this microstructure. This study demonstrates that a bimodal structure with an equiaxed α phase can be utilized to balance high strength and high ductility, resulting in better overall mechanical properties.