The effect of rare earth elements on microstructure and mechanical properties of casting Al-Cu-X alloy (X = Mn, Ti, V, Cd, Zr) was investigated in as-cast and T6 conditions. Microstructure evolution was characterized by optical microscopy, scanning electron microscopy, and transmission electron microscopy. REcontaining intermetallic compounds (IMCs) formed in this alloy were indentified by X-ray diffraction (XRD) and energy dispersive spectroscopy (EDS). It is shown that the additions of RE (60Ce-40La, wt%) result in the formation of Ce-rich blocky-shaped Al 20 (Ti, V) 2 RE and La-rich skeletal-shaped Al 8 Cu 4 RE. Tensile results of samples after T6 treatment indicate that the strength and ductility increase slightly to 480 MPa and 9.7 %, respectively, with RE content increasing from 0 wt% to 0.3 wt%. This is due to the combinative hardening effects of reduced grain size, enhanced precipitation of h 0 (Al 2 Cu) phase and Al 20 Cu 2 Mn 3 dispersed particles, and minor La-rich IMCs at the grain boundaries of a-Al dendrites. The decrease of strength of 0.5 wt% RE-added sample is ascribed to the aggregation of Al 20 (Ti, V) 2 RE IMCs inside the grains. The dual characteristic of rare earth elements was also discussed in terms of its positive and negative effects on mechanical properties.