Ultrafine-grained (UFG) materials processed by severe plastic deformation are known to exhibit good mechanical properties. Much about the annealing behavior of such materials is still unknown, and this work aims to provide a better understanding of the thermal properties of UFG materials. For this purpose a Cu–0.17 wt%Zr alloy was subjected to high pressure torsion (HPT) with a maximal pressure of 4.8 GPa at room temperature. The microstructures of the specimens were characterized using electron back scatter (EBSD) measurements, transmission electron microscopy (TEM), and hardness measurements. During annealing of the samples, dispersoids were formed which improved the thermal stability of the alloy. At higher strain levels the fraction of high angle grain boundaries (HAGBs) increased above 70% of the total grain boundaries.