Effect of rare earth Ce on microstructure and properties of Cr2O3/Cu composite was studied by internal oxidization of Cu-Cr-Ce prealloyed powder. The results show that the appropriate Ce addition into prealloyed powder can increase the properties of Cr2O3/Cu composite, improve Cr2O3 distribution in Cu matrix and refine Cr2O3 particles. Meanwhile, Ce addition can increase the yield rate of Cr2O3 and promote internal oxidization of Cr. Under the condition of this experiment, the optimum Ce addition is 0.1% (mass fraction).