Since 2006 and the implementation of environmental regulations, the electronic industry has moved to Pb-free solders. Harsh environment industries that were exempted from the regulations will soon have to follow suit. However, a suitable replacement solder for use in harsh environments still has to be validated and reliability models are yet to be established. In this review, research that led to the selection of currently used Pb-free alloys and the continuing search for high reliability alloys are described. Sn pest and Sn whiskers, potential major threats for electronics operating in harsh environments, are highlighted. This review also focuses on the microstructure, mechanical properties and deformation mechanisms of Pb-free alloys. Emphasis is placed on Sn–Ag–Cu alloys, now considered to be the alloys of choice for replacement of Sn–Pb solders. The reliability of Pb-free electronic assemblies is studied, focusing on thermal fatigue, believed to be the main source of failure through creep–fatigue mechanisms. The validity of models for Pb-free solder joints life time prediction is assessed and the lack of cohesiveness among the available reliability data is examined.