In this study, the ferromagnetic Heusler alloy Al-Cu-Fe was aged at a temperature of 300 degrees C for 0.5 h, 1 h, 1.5 h, 2 h and 2.5 h, respectively. The mechanical and structural properties, residual stress state and wear performance of the specimens were investigated. The results show that precipitation has a crucial influence on the mechanical properties and wear performance of a Heusler alloy. The hardness and wear resistance of the specimens improve with an increase of precipitation density. These precipitates are associated with Cu-rich and Al-Cu lamellar structures. The density of these precipitates reveal two certain Al2Cu peaks at an aging time of 90 minutes, and 150 minutes for the annealed specimens.