Ultrafine copper powder was prepared from $CuO-H_2O$ slurry with hydrazine, a reductant, under $70^{circ}C$. The influence of various reaction parameters such as temperature, reaction time, molar ratio of $N_2H_4$, PvP and NaOH to Cu in aqueous solution had been studied on the morphology and powder phase of Cu powders obtained. The production ratio of Cu from CuO was increased with the ratio of $N_2H_4/Cu$ and the temperature. When the ratio of $N_2H_4/Cu$ was higher than 2.5 and the temperature was higher than $60^{circ}C$, CuO was completely reduced into Cu within 40 min. The crystalline size of Cu obtained became fine as the temperature increase, whereas the aggregation degree of particles was increased with the reaction time. The morphology of Cu powder depended on that of the precursor of CuO and processing conditions. The average particle size was about $0.5;{mu}m$.