The microstructure of Cu-24 wt.%Ag filamentary nanocomposite fabricated by a thermo-mechanical process has been investigated by transmission electron microscopy (TEM) observations. This study is focused on the stability of Ag filaments formed by cold drawing; the effects of thermal treatment on the precipitation behavior and distribution of Ag-rich precipitates were also investigated. The Ag filaments elongated along the <111> orientation were observed in Cu-rich α phase of the as-drawn specimen and the copper matrix and the silver filament have a cube on cube orientation relationship. Annealing at temperatures lower than 200℃ for the as-drawn specimen caused insignificant change of the fibrous morphology but squiggly interfaces or local breaking of the elongated Ag filaments were easily observed with annealing at 300℃. When samples were annealed at 400℃, discontinuous precipitation was observed in supersaturated Cu solid solution. Ag precipitates with a thickness of 7-20 nm were observed along the <112> direction and the orientation relationship between the copper matrix and the Ag precipitates maintained the same orientation relationship in the as-drawn specimen. The interface between the copper matrix and the Ag precipitates is parallel to {111} and micro-twins were observed in the Ag precipitates.