The microstructure and properties of Copper-Graphite Composites (CGC) prepared by spark plasma sintering (SPS) based on two-step mixing and wet milling were investigated. The results showed that Cu powders were rolled into Cu flakes during milling, and their size significantly decreased from 23.2 to 10.9 μm when the graphite content increased from 1.0 wt.% to 2.5 wt.%. The oxidation of Cu powder was avoided during two-step mixing and wet milling. After spark plasma sintering, the graphite powders of the composites were mainly distributed at Cu grain boundaries in granular and flake shapes. The mean size of Cu grains was 9.4 um for 1.0 wt.% graphite content and reduced slightly with the increasing of graphite content. Compared with other conventional methods, the composite prepared by two-step mixing and SPS achieved higher relative density, electrical conductivity, and micro-hardness, which, respectively, reduced from 98.78%, 89.7% IACS (International annealed copper standard), and 64 HV (Vickers-hardness) to 96.56%, 81.3% IACS, and 55 HV when the graphite content increased from 1.0 wt.% to 2.5 wt.%. As the graphite content increases, the friction coefficient and wear rate of the composite decreases. When the graphite content of CGC is 1.0 wt.%, the main wear mechanism was plastic deformation, delamination, adhesive, and fatigue wear. The adhesive and fatigue wear disappeared gradually with the increasing of graphite content.