The present study investigated the effects of indium (In) addition on the microstructure, mechanical properties, and melting temperature of SAC305 solder alloys. The indium formed IMC phases of Ag3(Sn,In) and Cu6(Sn,In)5 in the Sn-rich matrix that increased the ultimate tensile strength (UTS) and the hardness while the ductility (% EL) decreased for all In containing solder alloys. The UTS and hardness values increased from 29.21 to 33.84 MPa and from 13.91 to 17.33 HV. Principally, the In-containing solder alloys had higher UTS and hardness than the In-free solder alloy due to the strengthening effect of solid solution and secondary phase dispersion. The eutectic melting point decreased from 223.0°C for the SAC305 solder alloy to 219.5°C for the SAC305 alloy with 2.0 wt% In. The addition of In had little effect on the solidus temperatures. In contrast, the liquidus temperature decreased with increasing In content. The optimum concentration of 2.0 wt % In improved the microstructure, UTS, hardness, and eutectic temperature of the SAC305 solder alloys.