Bi2Sr2Ca0.64Cu1.64Ox(nominally Bi2212) powders were fabricated into powder‐in‐tube Ag‐ and Ag(7 at. % Cu)‐sheathed tapes by cold and hot rolling to investigate the effects of sheath composition and rolling conditions on their microstructural development and superconducting properties. Bi2212 tapes with Ag(Cu) sheaths exhibited improved grain alignment and interfacial uniformity, as well as enhanced formation of the Bi‐free phase (≊Sr7.5Ca6.5Cu14Ox), relative to the Ag‐sheathed specimens. The hot‐rolled Ag(Cu)‐sheathed tapes displayed superior critical current densities (Jc), where magnetizationJcm=1.5×106(H∥c) and 4.6×105A/cm2(H⊥c) atT=5 K,H=1 T. Correspondingly, these specimens had transport critical current densities (Jct) of 6.7×104A/cm2(H∥c) and 5.4×104A/cm2(H⊥c) atT=4.2 K,H=0 T and 2.2×104A/cm2(H∥c) and 3.0×104A/cm2(H⊥c) atT=4.2 K,H=14 T. The chemical stability of the Ag(Cu) sheath regions during the partial melting process was also studied. Rapid oxidation of copper produced Cu2O precipitates in the sheath at 885 °C, and subsequently a Cu2O‐free zone developed near the core/sheath interface. A theoretical analysis of Cu2O precipitate formation and decomposition during thermal processing is presented. ©1995 American Institute of Physics.