Copper-clad aluminum (CCA) flat bars produced by the continuous casting–rolling process were subjected to continuous induction heating annealing (CIHA), and the effects of induction heating temperature and holding time on the microstructure, interface, and mechanical properties of the flat bars were investigated. The results showed that complete recrystallization of the copper sheath occurred under CIHA at 460°C for 5 s, 480°C for 3 s, or 500°C for 1 s and that the average grain size in the copper sheath was approximately 10.0 μm. In the case of specimens subjected to CIHA at 460–500°C for longer than 1 s, complete recrystallization occurred in the aluminum core. In the case of CIHA at 460–500°C for 1–5 s, a continuous interfacial layer with a thickness of 2.5–5.5 μm formed and the thickness mainly increased with increasing annealing temperature. After CIHA, the interfacial layer consisted primarily of a Cu₉Al₄ layer and a CuAl₂ layer; the average interface shear strength of the CCA flat bars treated by CIHA at 460–500°C for 1–5 s was 45–52 MPa. After full softening annealing, the hardness values of the copper sheath and the aluminum core were HV 65 and HV 24, respectively, and the hardness along the cross section of the CCA flat bar was uniform.