Abstract: The effect of Cu on the evolution of the Al3Zr phase in an Al-Cu-Zr cast alloy during solution treatment at 500 °C has been thoroughly studied by combining atomic resolution high-angle annular dark-field scanning transmission electron microscopy, energy-dispersive X-ray spectroscopy and first-principles cal- culations. The heat treatment initially produces a pure L12-Al3Zr microstructure, allowing for about 13 % Cu to be incorporated in the dispersoid. Cu incorporation increases the energy barrier for anti-phase boundary (APB) activation, thus stabilizing the L12 structure. Additional heating leads to a Cu-induced “branched”path for the L12 structural transformation, with the latter process accelerated once the first APB has been created. Cu atoms may either (i) be repelled by the APBs, promoting the transformation to a Cu-poor D023 phase, or (ii) they may segregate at one Al-Zr layer adjacent to the APB, promoting a transformation to a new thermodynamically favored phase, Al4CuZr, formed when these segregation layers are periodically arranged. Theoretical studies suggest that the branching of the L12 transformation path is linked to the speed at which an APB is created, with Cu attraction triggered by a comparatively slow process. This unexpected transformation behavior of the L12-Al3Zr phase opens a new path to understanding, and potentially regulating the Al3Zr dispersoid evolution for high temperature applications.