The materials of matrix-body polycrystalline diamond composite (PDC) bits were fabricated through pressureless melt infiltration method at 1200 °C for 1 h within vacuum furnace using molten CuNi metallic binder, Ni and WC powders (including cast WC, spherical WC, and fine WC). Various weight ratios of Ce2O3/(WC + Ni + CuNi) ranging from 0 to 0.01 were added to matrix-body materials. The influence of Ce2O3 on the microstructure, phase formation, phase transformations, and related mechanical properties of matrix-body materials was thoroughly investigated. The results show that experimental temperature led to the decomposition of WC and partial dissolution of W and C in CuNi binder alloys. In matrix-body materials with no Ce2O3 addition, only new W2C phase was formed. With further increase in Ce2O3/(WC + Ni + CuNi) ratios, spherical WC was dispersed into smaller WC particles. Meanwhile, new phases (namely Ni2W4C, C, and W2C) were found. The material exhibited an optimal hardness (HRA = 93.7) and transverse rupture strength (1846.8 MPa) when Ce2O3/(WC + Ni + CuNi) ratio was 0.006. However, impact toughness was slightly decreased, while the highest value of 6.45 J cm−2 was measured for the sample with Ce2O3/(WC + Ni + CuNi) ratio of 0.01.