The effects of Bi addition on the growth of intermetallic compound (IMC) formation in Sn-3.8Ag-0.7Cu solder joints were investigated. The test samples were prepared by conventional surface mounting technology. To investigate the element diffusion and the growth kinetics of intermetallics formation in solder joint, isothermal aging test was performed at temperatures of 100, 150, and 190℃, respectively. The optical microscope (OM) and scanning electron microscope (SEM) were used to observe microstructure evolution of solder joint and to estimate the thickness and the grain size of the intermetallic layers. The IMC phases were identified by energy dispersive X-ray (EDX) and X-ray diffractometer (XRD). The results clearly show that adding about 1.0% Bi in Sn-Ag-Cu solder alloy system can refine the grain size of the IMC and inhibit the excessive IMC growth in solder joints, and therefore improve the reliability of the Pb-free solder joints. Through observation of the microstructural evolution of the solder joints, the mechanism of inhibition of IMC growth due to Bi addition was proposed. The effects of Bi addition on the growth of intermetallic compound (IMC) formation in Sn-3.8Ag-0.7Cu solder joints were investigated. The test samples were prepared by conventional surface mounting technology. To investigate the element diffusion and the growth kinetics of intermetallics formation in solder joint, isothermal aging test was performed at temperatures of 100, 150, and 190 ° C, respectively. The optical microscope (OM) and scanning electron microscope (SEM) were used to observe microstructure evolution of solder joint and to estimate the thickness and the grain size of the intermetallic layers. The IMC phases were identified by energy dispersive X-ray (EDX) and X-ray diffractometer (XRD). The results clearly show that adding about 1.0% Bi in Sn-Ag-Cu solder alloy system can refine the grain size of the IMC and inhibit the excessive IMC growth in solder joints, and therefore improve the reliability of the Pb-free solder joints. Through observation of the microstructural evol the mechanism of inhibition of IMC growth due to Bi addition was proposed.