The interfacial reaction between Ni and Sn-3Ag-0.5Cu-xPd alloys (x = 0 wt.% to 1 wt.%) at 250°C and the mechanical reliability of the solder joints were investigated in this study. The reaction and the resulting mechanical properties were both strongly dependent on the Pd concentration. When x was low (£0.2 wt.%), the reaction product at the Ni/Sn-Ag-Cu-xPd interface was a layer of (Cu,Ni) 6 Sn 5 . An increase of x to 0.3 wt.% produced one additional (Pd,Ni)Sn 4 compound that was discontinuously scattered above the (Cu,Ni) 6 Sn 5 . When x was relatively high (0.5 wt.% to 1 wt.%), a dual layer of (Pd,Ni)Sn 4 -(Cu,Ni) 6 Sn 5 developed with the reaction time. The results of the high-speed ball shear (HSBS) test showed that the mechanical strength of the Ni/Sn-3Ag-0.5Cu-xPd joints degraded with increasing x, especially when x reached a high level of ‡0.3 wt.%. This degradation corresponded to the growth of (Pd,Ni)Sn 4 at the interface, and joints easily failed along the boundaries of solder/(Pd,Ni)Sn 4 and (Pd,Ni)Sn 4 /(Cu,Ni) 6 Sn 5 in the HSBS test. The (Pd,Ni)Sn 4 -induced joint failure (Pd embrittlement) was alleviated by doping the solder with an appropriate amount of Cu. When the Cu concentration increased to 1 wt.% and the Pd concentration did not exceed 0.5 wt.%, the growth of (Pd,Ni)Sn 4 could be thoroughly inhibited, thereby avoiding the occurrence of Pd embrittlement in the solder joints.