Iron-manganese (Fe-Mn) based degradable biomaterials have been proven as a suitable substitute to permanent internal fracture-fixation devices. However, lower degradation and bacterial infection are still major concerns. To overcome these limitations, in this work, we have incorporated copper (Cu) in Fe-Mn system. The objective is to produce Cu nano-precipitates and refined microstructure through suitable combination of cold-rolling and age-treatment, so that degradation is improved eventually. High resolution transmission electron microscope (TEM) and scanning transmission electron microscope (STEM) confirmed the Cu rich composition of the nano-precipitates. Number of precipitates increased as aging time increased. Three-dimensional visualization of Fe, Mn and Cu atomic distributions using atom probe tomography (APT), indicated that Cu precipitates were in 15-50 nm range. Large number of nano-precipitates along with lower dislocation density led to highest strength (1078 MPa) and ductility (37 %) for the 6-hr age-treated sample. On the other hand, nano-precipitates and refined microstructure resulted highest degradation for the 12 hr of age treated sample (0.091 mmpy). When E.Coli bacteria was cultured with the sample extract, significantly higher antibacterial efficacy was observed for the sample having higher nano-precipitates. Higher degradation rate did not cause cyto-toxicity, rather promoted statistically higher cell proliferation (1.5 times within 24 hr) in in vitro cell-material interaction studies. In vivo biocompatibility of the alloy containing large nano-precipitates was confirmed from higher new bone regeneration (60%) in rabbit femur model. Overall study suggested that the optimization of the thermo-mechanical processes can effectively tailor the Fe-Mn-Cu alloys for successful internal fracture fixation. STATEMENT OF SIGNIFICANCE: : In the present work, we have reported a noble thermo-mechanical approach to simultaneously achieve Cu nano-precipitates and grain refinement in Fe-20Mn-3Cu alloy. Significant reduction in bacterial growth was observed in the sample containing high Cu precipitation. This is extremely significant in the present context. Cu nano-precipitates and grain refinement improved the degradation rate. Highest yield strength was observed after 12 hours of age treatment (493 MPa). We have theoretically calculated various factors of yield strength. High degradation rate did not cause cytotoxicity, rather promoted cell viability. We have reported that the released Cu ion concentration in vivo was not only below toxic limit, but also helped in new bone regeneration.