In the current study, a new type of Cu-based shape memory alloys with the function of shape memory effect was successfully produced with the introduction of high-purity Co precipitates between the phases of Cu-Al-Ni shape memory alloy. The microstructure, transformation characteristics, and mechanical properties were systematically investigated by means of differential scanning calorimetry, field emission scanning electron microscopy, energy dispersive spectroscopy (EDS), transmission electron microscopy, X-ray diffraction (XRD), a tensile test, a hardness test, and a shape memory effect test. The typical microstructures show that a new phase was formed, known as the c 2 phase, and the volume friction and the size of this phase were gradually increased with the increasing Co content. According to the results of the XRD and EDS, it was confirmed that the c 2 phase represents a compound of Al 75 Co 22 Ni 3 . However, the presence of c 2 phase in the modified alloys was found to result in an increase of the transformation temperatures in comparison with the unmodified alloy. Nevertheless, it was found that with 1 wt pct of Co addition, a maximum ductility of 7 pct was achieved, corresponding to an increase in the strain recovery by the shape memory effect to 95 pct with respect to the unmodified alloy of 50 pct.