The DPCC(deformation processed Cu-based in-situ composite) behaved better combined performance. In this paper, Cu-10Fe-1.5Ag and Cu-10Fe-1.5Ag-0.1Zr in-situ composites were prepared using different forming processes and annealing techniques. The microstructure evolution was explored by SEM during the plastic deformation. It was found that Fe fibers were produced during drawing process and changed from trees dendrite to fiber structure in the form of flake. The effect of Zr on thermal stability of composite was analyzed also. It was shown that the adding of Zr element was helpful to increase the thermal stability of Cu-Fe composite by multi elements compound.