The microstructure, phase composition, and mechanical properties during heat treatment and rolling of the novel Al-5.0Cu-3.2Er-0.9Mn-0.3Zr alloy were evaluated. A new quaternary (Al,Cu,Mn,Er) phase with possible composition Al25Cu4Mn2Er was found in the as-cast alloy. Al20Cu2Mn3 and Al3(Zr,Er) phases were nucleated during homogenization, and θ″(Al2Cu) precipitates were nucleated during aging. The metastable disc shaped θ″(Al2Cu) precipitates with a thickness of 5 nm and diameter of 100–200 nm were nucleated mostly on the Al3(Zr,Er) phase precipitates with a diameter of 35 nm. The hardness Vickers (HV) peak was found after the annealing of a rolled alloy at 150 °C due to strengthening by θ″(A2Cu) precipitates, which have a larger effect in materials hardness than do the softening processes. The novel Al-Cu-Er-Mn-Zr alloy has a yield strength (YS) of 320–332 MPa, an ultimate tensile strength (UTS) of 360–370 MPa, and an El. of 3.2–4.0% in the annealed alloy after rolling condition.