In the present work, the hot deformation behavior and microstructural evolution of a TiB2/Al-Zn-Mg-Cu-Zr composite were studied. Hot compression tests were conducted within a temperature range of 370 °C to 490 °C and a strain rate of 0.001 s−1 to 10 s−1. We established the Arrhenius constitutive equation with Zener–Hollomon parameters and processing maps and discussed the microstructural evolution during hot deformation. The results indicated that the safe processing parameter region falls within 370 °C–490 °C and 0.001 s−1–0.025 s−1. The influence of the strain rate on the safe processing range is more dominant than that of deformation temperature, which is primarily attributed to TiB2. Dynamic softening is primarily governed by dynamic recovery (DRV). Small particles (η, Al3Zr) can pin dislocations, promoting the rearrangement and annihilation of dislocations and facilitating DRV. Higher temperatures and lower strain rates facilitated dynamic recrystallization (DRX). Continuous dynamic recrystallization (CDRX) occurs near high-angle grain boundaries induced by strain-induced boundary migration (SIBM). TiB2 and large second-phase particles generate high-density geometrically necessary dislocations (GNBs) during hot deformation, which serve as nucleation sites for discontinuous dynamic recrystallization (DDRX). This enhances dynamic softening and improves formability.