Pd was chosen as a minor alloying element in a new Sn-1.2Ag-0.7Cu-0.4In solder alloy to improve the drop/shock reliability. The tensile properties and drop/shock reliability of the new Sn-1.2Ag-0.7Cu-0.4In-0.03Pd solder alloy was compared with those of the Sn-1.0Ag-0.5Cu and Sn-3.0Ag-0.5Cu alloys. The UTS, yield strength and elongation of Sn-1.2Ag-0.7Cu-0.4In-0.03Pd were superior to those of the other alloys tested. Sn-1.2Ag-0.7Cu-0.4In-0.03Pd showed outstanding drop/shock reliability compared to the representative Pb-free solder, Sn-3.0Ag-0.5Cu. Therefore, the Sn-1.2Ag-0.7Cu-0.4In-0.03Pd composition is assessed to be an alternative Pb-free solder composition that may replace Sn-3.0Ag-0.5Cu. (C) 2009 Elsevier Ltd. All rights reserved.