A novel Cu based composite was fabricated by powder metallurgy, which was reinforced by Ti2AlN and La2O3. The study was focused on the Ti2AlN-Cu interfacial reaction and its effect on the properties of Ti2AlN-La2O3/Cu composite. The results indicate that Ti2AlN particles with a copper coating is effective for interfacial bonding, and a transition zone of 20 nm width forms between Ti2AlN and Cu matrix. In the range of sintering temperature from 880 oC to 940 oC, a reaction happens between Ti2AlN and plated copper layer. New substances, Cu(Al) and TiNx form, which is beneficial to the increasing of tensile strength, but harmful to electrical conductivity. In addition, La2O3 nanoparticles disperse in the Cu matrix which also strengthens the composite.