The composites fabricated by powder in sheath rolling method were cold-rolled by 50% reduction and annealed for 1.8 ks at various temperatures ranging from 200 to 50, for improvement of the mechanical properties. The mechanical properties and texture of the composites after rolling and annealing were investigated. The tensile strength of the composites increased significantly due to work hardening after cold rolling, however it decreased due to restoration after annealing. The strength of the composites was improved by thermo mechanical treatment. On the other hand, the texture evolution with annealing temperatures wa,i different between the unreinforced material and the composites. The unreinforced material showed a deformation (rolling) texture of which main component is {112}<111> at annealing temperatures up to 30. However, the composites have already exhibited a recrystallization texture of which main component is {001}<100> after annealing at 20. This proves that the critical temperature for recrystailization is lower in the composites than in the unreinforced ones.