The exploration of unleaded free-cutting Cu40Zn brass with excellent mechanical and tribological properties has always drawn the attention of researchers. Due to its attractive properties combining metals and ceramics, Ti₃AlC₂ was added to Cu40Zn brass using high-energy milling and hot-pressing sintering. The effects of Ti₃AlC₂ on the microstructure, mechanical and tribological properties of Cu40Zn-Ti₃AlC₂ composites were studied. The results showed that Ti₃AlC₂ could suppress the formation of ZnO by adsorbing oxygen impurity and promote the formation of the β phase by releasing the β-forming element Al to the substrate. The hardness and wear resistance of Cu40Zn-Ti₃AlC₂ composites increased with increasing Ti₃AlC₂ content from 0 to 5 wt.%. The proper Ti₃AlC₂ additive was beneficial to both the strength and plasticity of the composites. The underlying mechanisms were discussed.