Ag/Ti2AlC electrical contact material is a new type of environmentally friendly alternative material for Ag/CdO due to the good wettability and conductivity of Ti2AlC. However, the thermal stability and moderate oxidation sensitivity of Ti2AlC put restrictions on Ag/Ti2AlC materials manufacturing and application. Therefore, the thermal stability and oxidation behavior of Ti2AlC and Ag/Ti2AlC in air and Ar were analyzed by TG-DSC, XRD, SEM, EPMA and thermodynamic calculation. The practical periodic oxidation behavior of Ti2AlC and mixed Ag/10Ti2AlC powders at 300–900 °C in air and Ar atmosphere was studied. The negative effect of Ag diffusion into Ti2AlC particles on Ti2AlC’ s thermal stability was demonstrated. In addition, the different behavior of Ti and Al atom during the sintering process of Ag/10Ti2AlC in air at different temperature were also discussed and combined with the periodic oxidation of Ti2AlC.