The effects of Ag on microstructure, mechanical and electrical properties of NiAl intermetallic compound were investigated. The present results show that the NiAl-Ag alloys consisted of two phases: beta-NiAl and Ag-rich solid solution. The amount of the Ag-rich phase increased with increasing Ag content. The addition of 0.5-1at.% Ag to NiAl increased its strength while the addition of more than 1at.% Ag decreased its strength. In addition, Ag alloying can improve NiAl's room temperature compressive ductility. The NiAl-Ag alloy has high hardness and electrical conductivity that make it an attractive candidate for electrical contact material.