Impregnated diamond bits (IDBs) are widely used for drilling in hard formations. To improve the drilling efficiency and exposure behavior of IDBs in granite, three types of Cu-based basalt fiber (BF) composite IDBs were designed and prepared by using the medium-frequency induction hot-pressing and sintering method, in which 0 wt.% BF and 25 vol.% diamond were used in 0BF25D IDB, 1 wt.% BF and 25 vol.% diamond were used in 1BF25D IDB, 1 wt.% BF and 20 vol.% diamond were used in 1BF20D IDB. The drilling efficiency of each IDB was tested under different drilling pressures (WOB), and the exposure behavior of IDBs was investigated by scanning electron microscopy and ultra field microstructural characterization. Results show that drilling granite with grade 9 drillability, low drilling pressure can drill successfully with the addition of BF. The average rate of penetration (ROP) of 1BF20D IBD under 6 kN WOB was 4.78 m/h, which was improved by 60%∼80%, energy consumption decreased by 66% for each meter, torque (TOB) decreased, and rotational speed (RPM) was more stable during the drilling process. The addition of BF and reasonable diamond concentration enhanced the holding power of the diamond which promoted the exposure of the diamond. The average exposed height of the diamond in 1BF20D IDB reached 121.2 μm with 22% to 29% of the whole diamond.