The microstructural evolution and texture development in a Cu-Ag eutectic during rolling are systematically investigated. A directionally solidified Cu-Ag alloy with a single dominant texture is deformed to several rolling reductions. At each of these strains, the microstructure and texture are characterized. Rapid divergence of local crystal orientations leads to the early development of high-angle Cu-Ag boundary/interface orientations, while less misorientation accumulation occurs within the individual copper and silver layers. With increasing deformation, orientations of the copper and silver phases in a single region are observed to diverge to two distinct textures, and within each of the single phases, there is a greater spread of orientations of individual cells while still retaining an identifiable preferred orientation.