We report optical and infrared observations of the 1987 outburst of the recurrent nova V394 Coronae Austrinae. The amplitude of the outburst (ΔV ≃ 11 mag) is comparable to that of classical novae. The fast optical decline rate (t3 = 5 day) and the gross spectral characteristics of V394 CrA closely resemble those of U Sco. Compared to U Sco, the broad emission bands (FWZI ~ 8000 km s-1) in the early decline are slightly narrower, and the late optical decline and spectral development are slower. Implications for thermonuclear runaway models are mentioned.