Among the copper alloys, the Cu-3Ag-0.5Zr alloy is one of the potential candidates for combustion chamber of liquid rocket engine because of its optimum combination of high strength with thermal conductivity. The present study is a detailed characterization of microstructure, strength, and electrical conductivity during the aging treatment. The aging cycle for Cu-3Ag-0.5Zr alloy after the solution treatment (ST) was optimized to obtain higher hardness without compromising on electrical conductivity. The precipitates responsible for strengthening in aged samples are identified as nanocrystalline Ag precipitates with an average diameter of 9.0±2.0 nm. © (2012) Trans Tech Publications.