To clarify the effect of CuO on the arc erosion behavior of AgZrO2 contact materials, the Ag-8 wt.%ZrO2 contact materials without and with CuO addition were prepared by the combination of three-dimensional vibrating mixing and hot-pressing sintering, and the electrical contact tests were performed 5000 times on a JF04D electrical contact testing system. The effect of CuO additive on the arc erosion behavior of Ag-8 wt.%ZrO2 contact material was studied, and the arc erosion mechanism was discussed as well. The results show that an appropriate CuO addition can significantly improve the hardness, electrical conductivity and arc erosion resistance of Ag-8 wt.%ZrO2 contact material. At 0.5 wt%CuO, the optimal combination of relative density, hardness and electrical conductivity can be achieved, which are 99.48 %, 79.0 HV and 79.3 %IACS, respectively. Furthermore, the Ag-8 wt.%ZrO2 contact material with 0.5 wt%CuO addition exhibits the lowest arc energy and shortest arc duration, least mass loss, and silver splashing as well as the formation of pores are also significantly inhibited, displaying excellent arc erosion resistance. This can be ascribed to the improved electrical conductivity and enhanced interface bonding together with CuO decomposition under high temperature arc.