New light and radial-velocity curves of V497 Cep, a binary in the open cluster NGC 7160, were obtained and the linear ephemeris of the system was refined to HJD (Min I)=(2446 299.196+/-0.0064)+(1.(d)2028287+/-0.(d)0000015) x E. The first light and radial-velocity curve solutions allowed us to derive the basic physical properties of this astrophysically important binary. It was found that the observed light variation of V497 Cep consists of a strong ellipticity effect and a small contribution from grazing eclipses. A comparison of masses and radii of V497 Cep with theoretical evolutionary tracks indicates that both binary components are very close to the zero-age main sequence. A comparison of disentangled line profiles of the He I 6678 line with synthetic, rotationally broadened line profiles indicates that the rotation of both stars is synchronized with the orbital revolution as expected. This finding increases the credibility of our solutions. We find E(B-V)=0.(m)9. The distance to the cluster NGC 7160 was found to be about 760 (+/-100) pc which agrees well with other available estimates.