The microstructural variation and antibacterial properties of the AISI 304 stainless steel containing silver (Ag) element have been investigated by means of optical microscopy (OM), grazing incidence X-ray diffractometry (GIXRD), scanning electron microscopy (SEM) and energy-dispersive X-ray spectrometer (EDS). Furthermore, the antibacterial testing was performed according to JIS Z2801:2000 specification. As the alloy contained Ag elements, the microstructure of the alloys was a mixture of (alpha + gamma + Ag-rich compound)-phases. The amounts of a phase and Ag-rich compound increased as Ag contents increased. The Ag-rich compound has FCC structure with the lattice parameter a = 0.251 nm. No precipitates were found within the matrix and grain boundaries in the present alloys after SHT. Moreover, when the alloy is added to Ag element, antibacterial property was seen obvious against E. coli. It has an AR nearly of 100%. (C) 2010 Elsevier B.V. All rights reserved.