The high porosity and coarse grain of sintered TC16 titanium alloy produced by powder-metallurgy (PM) limit the promotion in engineering application. Hot rolling and heat treatment plays an important role in adjusting the mechnical properties of titanium alloys. In this work, the hot rolling with 80% deformation is applied to eliminate the porosity and refine the coarse grain of the sintered samples. Combined with annealing process to tailor the microstructure of the TC16 alloy, to achieve a better strength-plasticity combination, i.e., an ultimate tensile strength of ~ 947.5 MPa, a yield strength of ~ 874.7 MPa and an elongation of ~ 17.6%. Static recrystallization occurs during the annealing process of TC16 titanium alloy, and the thermal driven diffusion of elements forms equiaxial α-grains, which effectively resists crack extension and improves the plasticity of the alloy. This work suggests a novel and cost-effective strategy to produce titanium alloys with excellent mechanical properties, which is expected to be used in the aircraft industry.