The Ni nanoparticle‐decorated reduced graphene oxide (Ni‐rGO) reinforced Sn2.5Ag0.5Cu lead‐free composite solder, as well as the interfacial intermetallic (IMC) and the shear strength of soldering joints, are investigated with scanning electron microscopy (SEM), X‐ray diffraction (XRD), and transmission electron microscope (TEM). The results show that Ni‐rGO can be synthesized by the thermal decomposition method, and the adsorption type between Ni atoms and rGO is chemisorption. When the amount of Ni‐rGO addition reaches 0.05 wt%, the high strength and toughening Ni‐rGO reinforced lead‐free composite solder is obtained, with a tensile strength and elongation of 58.0 MPa and 32.3%, respectively. The growth of the interfacial IMC layers is restrained by the addition of Ni‐rGO, and the highly reliable soldering joints are obtained accordingly. When the amount of Ni‐rGO addition reaches 0.05 wt%, the shear strength of the Ni‐rGO reinforced lead‐free composite solder is 28.1 MPa, which is 26.6% higher than that of the plain Sn2.5Ag0.5Cu soldering joints. With the increase in the amount of Ni‐rGO, the fracture pattern is transforme from a ductile‐brittle mixed fracture to a ductile fracture. Additionally, the fracture pathway shifts from a transition zone, consisting of soldering seam and interfacial IMC, to the direction of the soldering seam.