New type Fe-Cu alloy is used in the bar of induction motor with compound cage rotor(IMCCR). In this paper, the preparation of three kinds of Fe-Cu alloy is introduced. The influence of its microstructures, hardness and impact toughness is studied by using metalloscope and scanning electron microscope. Meanwhile, physical propertie such as resistivity, and B-H curve is tested by using magnetic testing device and bridge circuit. The influence of carbon content changing on microstructure and performance of Fe-Cu alloy is analysised, which has positive significance to the new type material using in motor.