The DC conduction and dielectric behaviour of copper oxide nanoparticles prepared by sol-gel method and sintered at 950 degrees C were studied in the temperature range of 200-526 K. The formation of single phase monoclinic CuO was confirmed by x-ray diffraction. Chemical composition of the CuO ceramic was investigated with X-ray photoelectron spectroscopy (XPS) technique. Although XRD analysis shows the formation of single phase CuO, XPS spectra revealed the presence of Cu3+ and Cu2+. Deviation from linearity In (sigma(DC)) vs. 1/Tplot at 390 K was observed, which indicates that DC conduction in the CuO pellet is dominated by two different conduction mechanisms. The results obtained on AC conductivity indicate that AC conduction mechanism could be well explained by the multihopping model at low frequencies, while high frequency AC conductivity data can be described by small polaron tunnelling model. The dielectric relaxation mechanism in the CuO pellet was studied by impedance spectroscopy. It was found that while dielectric constant is an increasing function of temperature, it decreases with increasing frequency. The obtained impedance spectra indicated that the grain boundary effects and intergranular activities play a crucial role on the dielectric relaxation processes.