The microstructure evolution and mechanical properties of the compressively deformed AgInCd alloy during annealing treatment have been investigated in the present study. In the deformed AgInCd alloy, many deformation markings are formed and these deformation markings are mainly composed of nanoscale deformation twins. The AgInCd alloy exhibits a significant work hardening capability because of the formation of deformation twins. The recrystallization temperature of the deformed AgInCd alloy is between 300 °C and 350 °C. In the AgInCd alloy annealed at 300 °C, the deformation twins are eliminated and a large number of dark strips consisting of stacking faults are presented in the un-recrystallized regions, indicating that the deformation twins are transformed into stacking faults by the detwinning mechanism. The annealing twins show higher thermal stability than the deformation twins. The strength and microhardness of the deformed AgInCd alloy gradually decrease with the increase of annealing temperature.