With the miniaturization of solder joints and deterioration of serving environment, much effort had been taken to improve the properties of Sn-based lead-free solders. And the fabrication of Sn-based lead-free composite solder alloys by the addition of nanoparticles is one of the effective ways to enhance the properties. In this paper, the recent research progress on the Sn-based lead-free composite solder alloys is reviewed by summarizing the relevant results in representative ones of Sn-Ag-Cu (SAC), Sn-Bi, and other multielement lead-free composite solder alloys. Specifically speaking, the effect of the added nanoparticles on the evolution of wettability, microstructure morphology, and mechanical properties of Sn-based lead-free composite solder alloys are summarized. It is hoped that this paper could supply some beneficial suggestions in developing the novel Sn-based lead-free composite solder alloys. Additionally, the existed issues and future development trends in the exploitation of new novel Sn-based lead-free composite solder alloys are proposed.