The effect of addition of In, up to 1wt.%, on the formation of intermetallic compounds (IMCs) in the solidified Sn–3.7%Ag–0.9%Zn lead-free solder was investigated. As observed by microstructural analysis, the typical structure of Sn–Ag–Zn solder is composed of β-Sn phase and mixed granules of Ag 3 Sn and AgZn IMCs. After alloying with In, it evolves into a mixture of randomly distributed rods and granules of Ag 3 Sn and AgZn. Clearly, the addition of In into the explored Sn–Ag–Zn solder promotes the formation of rod-like IMCs for the reason that the growth competition of the Ag 3 Sn and AgZn IMCs was destroyed by the selective adsorption of In atoms on a certain preferable crystalline planes of the separated IMCs. The change in the morphology of the formed IMCs leads to a great difference in the mechanical performances, for example, the measured microhardness of the investigated solders evolves from 16.95HV to 21.35HV with the increase of In content.