The changes in microstructure and mechanical properties of ZrCuAlNiO alloy after tempering were investigated. The morphology of the martensite changes, and both the interfaces of martensite variants and substructural boundaries fade after the tempering treatment. The Zr2Al phase precipitates in Zr2(Cu, Al, Ni) grains at temperatures higher than 747 K, and its size increases with the tempering temperature, while Zr2Ni phase precipitates in martensite zone at temperatures higher than 1053 K. The mechanical property was improved by the presence of the precipitates after tempering. The correlation between microstructure and property in this alloy was discussed.