Effects of dispersoid elements on mechanical behavior of Al-Cu-Mg-Ag based alloys have been examined to maximize the damage tolerance capability of the alloy system. Marked difference was observed on damage tolerance of these alloys via selection of dispersoids while their mechanical properties were essentially unchanged. Microstructural examination including fractography will be presented to rationalize the observed differences of mechanical behavior. Based on these observations, potential applications of the selected alloy will be also discussed.