Abstract: Multi-material laser-based powder bed fusion (PBF-LB) allows manufacturing of parts with 3-dimensional gradient and additional functionality in a single step. This research focuses on the combination of thermally-conductive CuCr1Zr with hard M300 tool steel. Two interface configurations of M300 on CuCr1Zr and CuCr1Zr on M300 were investigated. Ultra-fine grains form at the interface due to the low mutual solubility of Cu and steel. The material mixing zone size is dependent on the configurations and tunable in the range of 0.1–0.3 mm by introducing a separate set of parameters for the interface layers. Microcracks and pores mainly occur in the transition zone. Regardless of these defects, the thermal diffusivity of bimetallic parts with 50vol% of CuCr1Zr significantly increases by 70%–150% compared to pure M300. The thermal diffusivity of CuCr1Zr and the hardness of M300 steel can be enhanced simultaneously by applying the aging heat treatment.