Contact material is widely used in the field of electrical parts. Ag-CdO material has a good wear resistance and stable contact resistance. In order to establish optimizing heat treatment condition, rolling temperature and oxidation process, we studied the microstructure of Ag-CdO material with various conditions. The experimental procedure were melting using high frequency induction, heat treatment, rolling and internal oxidation. And we experimented on difference process, Post-oxidaion. In this study, we obtained the optimizing heat treatment condition was $700^{circ}C$ for 15 min. and the optimizing rolling temperature was $730^{circ}C$. In investigation of the microstructure of oxidized material, coarse oxide and depleted oxidation layer existed. The hardness was average Hv 70. When we used Post-oxidation, oxides were finer than prior process and depleted oxidation layer did not exist. The hardness of Post-oxidation material was average Hv 80. And the optimizing rolling temperature was $800^{circ}C$.