Layered compounds have garnered widespread interest owing to their nontrivial physical properties, particularly their potential as thermoelectric materials. We systematically investigated PbBi 2 Te 4 , a compound derived from Bi 2 Te 3 and PbTe. Synchrotron X-ray diffraction and transmission electron microscopy revealed that PbBi 2 Te 4 adopts and maintains the R3̅ m phase from 300 to 723 K, without any phase transition. Moreover, neutron pair distribution function analysis confirmed that the short-range local structure was consistent with the high-symmetry R3̅ m structure. PbBi 2 Te 4 exhibits a negative Seebeck coefficient, indicating electron-dominated transport. It has a low lattice thermal conductivity (ca. 0.6 Wm −1 K −1 ) and a ZT value of 0.4 at 573 K. The effects of GeBi 2 Te 4 alloying in PbBi 2 Te 4 (Pb 1−x Ge x Bi 2 Te 4 , where x ranges from 0.0 to 0.6) were also investigated. Due to alloying-induced point defect scattering and the off-centering effects of Ge 2+ , the room-temperature lattice thermal conductivity decreased to 0.55 Wm −1 K −1 when x = 0.5. Combined with a maintained weighted mobility (ca. 60 cm 2 V −1 s −2 ), the room-temperature ZT increased to 0.28. This value could further increase to 0.65 with a reduction in lattice thermal conductivity to its lower-limit value. A high ZT of 1.0 is also predicted for pristine PbBi 2 Te 4 at 473 K, demonstrating its potential as a near-room-temperature thermoelectric system.