In the present study, an electroless nickel (EN) plating method is applied for the coating of silicon carbide (SiC) particles. The particles of SiC(Ni) were added to the Sn–3.0Ag–0.5Cu matrix for the production of SAC305/SiC(Ni) composite by the powder metallurgy route. SAC305/xSi(Ni) composite was prepared by a planetary ball milling of the starting powder, followed by compacting and sintering. Nickel-coated silicon carbide particles and the lead-free solder matrix react together, forming different phases during sintering at temperature 200°C for 3 h. The microstructure, mechanical (compressive strength, microhardness, wettability, and porosity) and physical properties (density) of lead-free solder composite SAC305/SiC(Ni) were studied. The current research shows the successful application of electroless nickel (EN) plating method, and how nickel-coated SiC particles subsequently improve the mechanical properties and microstructure of lead-free solder.