Abstract: Microstructural and mechanical properties of the eutectic Sn58Bi and micro-alloyed Sn57.6Bi0.4Ag solder alloys were compared. With the addition of Ag micro-alloy, the tensile strength was improved and this is attributed to a combination of microstructure refinement and an Ag3Sn precipitation hardening mechanism. However, ductility is slightly deteriorated due to the brittle nature of the Ag3Sn intermetallic compounds (IMCs). Additionally, a board level reliability study of Ag micro-alloyed Sn58Bi solder joints produced utilising a surface-mount technology (SMT) process, were assessed under accelerated temperature cycling (ATC) conditions. Results reveal that micro-alloyed Sn57.6Bi0.4Ag has a higher characteristic lifetime with a narrower failure distribution. This enhanced reliability corresponds with improved bulk mechanical properties. It is postulated that Ag3Sn IMCs are located at the Sn-Bi phase boundaries and suppress the solder microstructure from coarsening during the temperature cycling, hereby extending the time to failure.