Performances of Ag-SnO2 electrical contact materials can be strongly affected by the microstructure. In this work, Ag-SnO2 composite powders were synthesized by chemical reductive precipitation method. During the precipitation process, Ag particle was deposited onto the surface of SnO2 particle with the assistance of citric acid. The microstructure and properties were analyzed for the prepared Ag-SnO2 electrical contact materials. Our research reveals that the particle size of SnO2 has significant influence on the morphology of the Ag-SnO2 composite powders, and therefore on the microstructure and physical properties of the electrical contact materials. With the decrease of particle size of SnO2, hardness of the Ag-SnO2 electrical contact materials increases, while electrical conductivity decreases.