In composites, outstanding properties of two materials can be combined. Inparticular, metal–matrix composites (MMCs) can combine the properties of ahigh-strength ductile metallic matrix with special properties of embeddedceramic particles. This hybrid can be used to create a functional material.However, during consolidation, the thermal load of most common MMC-processing routes is an obstacle for such functionalization, because the uniqueproperties of the ceramic phases most likely degrade. Mechanical alloying, in thiscase, by high-pressure torsion (HPT), can overcome this challenge. Herein, theattempt to obtain smart materials through HPT processing is aimed. For thatpurpose, Cu-MMCs are produced from mixed powders with ZrO2and BaTiO3(BTO) with the challenge to incorporate their functional phase. BTO can providea sensing ability for internal stress and ZrO2can provide a fatigue lifetime by aretarded crack growth. The amount of the stabilized phase is evaluated by X-raydiffraction. Cu–BTO–MMCs exhibit a local piezoelectric effect when strained,shown by in situ scanning Kelvin probe force microscopy. Cu–ZrO2–MMCsfeature a retarded fatigue crack initiation and an earlier crack closure duringfatigue crack growth due to the volume expansion once ZrO2transforms.