Abstract: A new internal oxidation method for fabrication the Cu-Al₂O₃ composites with Cu-Al alloy powder has been proposed. Using this method, the internal oxidation is carried out in the vacuum with the oxygen pressure of 300Pa and the compacting process is the heat forging. The experimental research and theoretical analysis have been made. The results show that the internal oxidation in the vacuums with the oxygen pressure of 300Pa is helpful to increase the internal oxidation rate, decrease the size of Al₂O₃ particles and separate out Al₂O₃ particles dispersively, and the heat forging has the evident compacting effect which improves the microstructure and properties of the composites. The new method can simplify the present fabrication processes and is easy to be applied for mass production.