An advanced Cu-FeC composite material with good interface bonding was prepared by vacuum induction melting and rapid solidification technology. The microstructure evolution and deformation behaviors of the composites in the as-cast, austenitizing + quenching and cold rolling states were studied by OM, SEM, TEM, XRD characterization and mechanical property measurements. The results show that, γ-Fe、α-Fe and martensite phase coexist in the as-cast composite, however, after the treatment of austenitizing (820℃/4min) + quenching the primary Fe-C phase in the matrix can be transformed into martensite, and a large number of nano-sized γ-Fe phase particles can be also formed. The composite in the as-cast state possesses a better deformability during cold rolling process, while micro cracks could be formed in the coarse Fe-C martensite phases or around them in the quenched composite during cold rolling. The strengths of the composites could be both increased significantly after cold rolling, and the highest tensile strength could reach about 515MPa, but the plastic deformation characteristics still can be seen in them. Additionally, their elongations are much higher than those of the reported ceramic particles reinforced copper matrix composites with similar strengthes. Finally, based on the microstructure evolution of Cu-FeC composite material, the deformation and fracture models of the composites with different microstructure characteristics were put forward in this paper.