It is widely acknowledged that topologically close packed (TCP) phases are detrimental to comprehensive properties of superalloys, as TCP phases deplete strengthening elements from matrix and easily become crack initiations. In this work, the precipitation kinetics and morphology of topologically close packed μ phase in FGH4097 powder metallurgy (PM) superalloy with (0~0.89%)Hf and the effect of μ phase on the mechanical properties of FGH4097 PM superalloy billet with 0.30%Hf has been investigated. The results showed that μ phase precipitated obviously in the alloys with 0.30%Hf and 0.89%Hf after long-term ageing at 750~900 ℃, the amount and size of μ phase increased as the ageing temperature, ageing time and Hf content increasing. μ phase mainly precipitated in grains with strip and flake shapes. After long-term ageing at 550~650 ℃, no μ phase precipitated in FGH4097 PM superalloy billet with 0.30%Hf and the tensile properties and stress-rupture properties at high temperature were not decreased, which showed excellent microstructure stability. After long term ageing at 750 ℃, precipitated μ phase had little effect on tensile strength at high temperature, however, the tensile ductility increased and high temperature stress rupture life reduced, and the stress rupture ductility increased by about 20%. In this work, the precipitation behavior of μ phase, the redistribution of elements in γ solid solution and the FGH4097 PM superalloy fracture morphology characteristics have been discussed in detail. The mechanism of the brittle and ductile dual effect of μ phase on the mechanical properties has been explained. The methods of controlling and avoiding excessive μ phase precipitation which leaded to performance deterioration have been proposed.