A deformation-processed Cu-10Fe-3Ag in situ composite was made by consumable arc melting and casting followed by extensive deformation. A superior combination of mechanical strength and electrical/thermal conductivity was achieved with the composite since Fe filaments existed in the copper matrix. The effects of sliding speed and electrical current on sliding wear behavior and microstructure of the composite were investigated on wear tester. Worn surfaces of the Cu-10Fe-3Ag in situ composite were analyzed by scanning electron microscopy (SEM). Within the studied range of electrical current and sliding speed, the wear rate increased with the increasing electrical current and the sliding speed. Compared with Cu-10Fe in situ composite under the same conditions, the Cu-10Fe-3Ag in situ composite had much better wear resistance. Adhesive wear, abrasive wear and arc erosion were the dominant mechanisms during the electrical sliding processes.