Titanium alloys that are used in biomedical applications must possess biocompatibility and a low elastic modulus so that they protect host bone tissue without causing stress shielding. As the elastic modulus of beta Ti alloys is close to that of bone (10–30 GPa), these alloys are considered potential orthopedic implant materials. The elastic modulus of the single β-phase Ti-39Nb-6Zr (TNZ40) alloy is approximately 40 GPa, whereas the strength is lower than that of other types of Ti alloys. Interstitial oxygen in a Ti matrix is well known to improve the matrix strength by solid-solution hardening. The desired mechanical properties can be optimized using a thermo-mechanical procedure to maintain a low elastic modulus. In order to enhance the strength, TNZ40 alloys were fabricated with different amounts of oxygen. The TNZ-0.16O and TNZ-0.26O alloys were cold swaged into 11 mm diameter bars, subjected to solution treatment at 900 °C and 950 °C for 2 h, and furnace-cooled to room temperature. As a result, recrystallized grains were clearly observed in the β matrix. The TNZ-0.26O alloy that was cold-worked by swaging followed by solution treatment at 900 °C exhibited the best mechanical properties (Vickers hardness: 247 HV, ultimate tensile strength: 777 MPa, elongation at rupture: 18.6%, and compressive strength: 1187 MPa). This study reports the effects of oxygen content on the recrystallization behavior and mechanical properties of these alloys.