The present study was undertaken to examine the effects of rare earth (RE) in hot pressing of Cu-Sn-TiH2-bonded diamond composites. Two kinds of composite specimens – with RE and without RE – were fabricated. As an additive to the Cu-Sn-TiH2 bond matrix, the RE was used in the form of misch-metal. The hardness and transverse rupture strength (TRS) of the specimens were measured. SEM and EDS were used to analyze the fracture surfaces of the specimens. Both hardness and TRS of the specimens with RE were found to be higher than the specimens without RE. SEM observations indicated that the pop-outs of diamonds on the fracture surface of the segments without RE are more than the specimens with RE. But more diamonds were fractured on the fracture surface of the segments with RE.