Cu-Al₂O₃ composites prepared by external oxidation method were further enhanced by severe plastic deformation (SPD) processing, including equal-channel angular pressing (ECAP) and high-pressure torsion (HPT) methods. The HV hardness and electrical conductivity of the samples before and after SPD processing were tested. Results revealed that ECAP samples (with an equivalent strain of about 5.34) showed a relative small increase in hardness, whereas a significant decrease in electrical conductivity. The HPT samples (with an equivalent strain of about 6.94) showed not only a much improved hardness but also a higher electrical conductivity. Thermal stability of the SPD-processed Cu-Al₂O₃ composites was tested, and the HPT samples maintained good HV hardness together with high electrical conductivity even at 600 °C. The combination of external oxidation method and HPT processing resulted in enhanced mechanical properties, good electrical conductivity, acceptable thermal stability, and much simplified oxidation process.