Samples of electrical contact alloy (Cu-7Ag) without and with an addition of 4%Vf of Y2O3 were prepared via powder metallurgy route. The green compacts of the samples were sintered at 850 ℃ for 4 h. The heat treatments included homogenization at 777 ℃ for one hours, quenching in ice-water, and aging at 400 ℃ for 8 h. A pressure of 825 MPa was used to squeeze the alloy samples at room temperature, 400 ℃, and 600 ℃. Many Tests have been done before and after the thermo-mechanical treatments to study its impact on metallurgical, mechanical and electrical properties of the samples. The results indicated that the hot squeezing at 600 ℃ and the 4% Vf of Y2O3 addition evolved the best enhancement in physical and mechanical properties of the studied electrical contact material. By squeezing at 600 ℃: the hardness of the base alloy was improved by 39%, the electrical conductivity was improved by 31%, and the porosity reduces by 54% while, the grain size reduced by 58% and the wear rate reduces by 90%. Adding 4% Vf of Y2O3 enhanced the hardness and the electrical conductivity by 51% and 25% respectively. In addition, it reduced the porosity by 43%, the grain size and the wear rate by 83% and 85% respectively.