The evolution of the microstructural and mechanical properties of alloy 617B during long-term service on a key-component test platform at 700 °C was systematically investigated. The precipitation behavior and size changes of the M23C6 and γ′ phases were characterized by scanning electron microscopy (SEM) and transmission electron microscopy (TEM). The results showed that carbide M23C6 precipitated in the form of discontinuous particles, plates, or needles at grain boundaries and within grains, while the γ′ phase had a spherical shape and was distributed in a dispersed manner. With prolonged service time, both the M23C6 and γ′ phases gradually coarsened. After 24,000 h of service, the yield strength, tensile strength, and Brinell hardness of alloy 617B significantly increased; however, the impact toughness decreased, accompanied by intergranular embrittlement. The increase in precipitate volume fraction and its contribution to the strength of the alloy were evaluated by a precipitation strengthening model. The coarsening of M23C6 was identified as the main cause of embrittlement. The findings of this study provide important experimental data and theoretical support for the stability of 617B alloys under long-term high-temperature service conditions.