A small amount of misch metal was added to CuZnAl alloy in order to study the effect of grain refinement and mechanical properties, phase transformation behavior and stabilization of martensite. It was found that the addition of misch metal was very effective for reducing the grain size. The coarse grains over 1000 μm have been refined to the size of 30 μm by the addition of 0.43wt% misch metal. The grain size of thermo-mechanically treated alloys was barely affected by cold working. The fracture strength and ductility have been significantly increased with the increase of misch metal content when tensile test is carried out below Mf temperature. Also, the fracture strength has been more increased in the case of post-quench ageing treatment than the direct quench ageing treatment. The fracture mode has been changed from transgranular brittle fracture to ductile fracture with void formation and coalescence by the addition of misch metal.