Two different types of lead‐free solder joints Cu/(Sn3.0Ag0.5Cu)/Cu and Cu/Sn/(Sn3.0Ag0.5Cu)/Sn/Cu have been investigated. Joints are produced following the transient liquid phase like soldering process. The microstructure of different intermetallic compounds (IMCs) present at the joint interfaces, as well as their indentation hardness and elastic modulus, have been investigated and analyzed using scanning electron microscopy (SEM), X‐ray diffraction (XRD) spectroscopy, and nanoindentation. The exact position of different microcracks inside the interfaces has been identified by analyzing the elastic–plastic properties and interfacial toughness of these solder joints. The modulus and hardness of the Sn multilayer‐assisted solder joint interface are found to be 60.08%, and 90.18% higher than those of its non‐layered counterpart, respectively. The finite element analysis (FEA) has been done to estimate and compute stress distributions over the interfacial region. The dislocation mechanics involved in strengthening the joint strength are related to the nature of stress flow; as observed in FEA. It is reconfirmed that the high susceptibility to brittle failure of the non‐layered Cu‐SAC305 solder joints could be avoided by using a Sn interlayer in between the Cu substrates and the SAC305 solder paste.