Electrical contact property of the W-20wt%Cu contact materials manufactured by liquid phase sintering of nanocomposite W-Cu powders was investigated and discussed in terms of microstructural development during performance test. Nanocomposite powders were prepared by hydrogen reduction of ball milled W-Cu oxide mixture. They underwent complete densification and microstructural homogenization during liquid phase sintering. As a consequence, the W-Cu contacts produced from nanocomposite powders showed superior contact property of lower arc erosion and stable contact resistance. This might be mostly due to the fact that the arc erosion by evaporation of Cu liquid droplets and surface cracking remarkably became weakened. It is concluded that the improvement of anti-arc erosion of the composite specimen is basically attributed to microstructural homogeneity.