The thermoelectric properties of single-and polycrystalline FeGa3 are systematically investigated over a wide temperature range. At low temperatures, below 20 K, previously not known pronounced peaks in the thermal conductivity (400-800 W K −1 m −1 ) with corresponding maxima in the thermopower (in the order of -16000 µV K −1 ) were found in single crystalline samples. Measurements in single crystals along [100] and [001] directions indicate only a slight anisotropy in both the electrical and thermal transport. From susceptibility and heat capacity measurements, a magnetic or structural phase transition was excluded. Using density functional theory-based calculations, we have revisited the electronic structure of FeGa3 and compared the magnetic (including correlations) and non-magnetic electronic densities of states. Thermopower at fixed carrier concentrations are calculated using semi-classical Boltzmann transport theory, and the calculated results match fairly with our experimental data. The inclusion of strong electron correlations treated in a mean-field manner (by LSDA+U ) does not improve this comparison, rendering strong correlations as the sole explanation for the low temperature enhancement unlikely. Eventually, after a careful review, we assign the peaks in the thermopower as a manifestation of the phonon-drag effect, which is supported by thermopower measurements in a magnetic field.