Silver copper oxide composites were prepared by reactive synthesis and powder metallurgy methods, Microstructures and properties of silver copper oxide composites by the two methods were studied in the present paper. The results show that silver copper oxide fabricated by reactive synthesis possess unique ringed microstructure that brings its good mechanical and alternating current contact properties. It means that reactive synthesis method can obtain better mechanic properties than powder metallurgy method in fabrication silver copper oxide composites. The service life of Ag/CuO material with reactive synthesis was twice as long as it with powder metallurgy under AC (220 V) and DC (24 V).