Sn-Cu-Y2O3 nanocomposite solder is synthesized from a citrate bath by pulse electrodeposition route. Y2O3 powder is synthesized from a sol-gel assisted combustion route. Different techniques such as SEM, XRD, and TEM are used to characterize Y2O3 powder. The particle size of Y2O3 powder is found to be 27 nm. The effect of adding cetyl trimethyl ammonium bromide (CTAB) on the synthesis of Sn-Cu-Y2O3 nanocomposite lead-free solder is studied. The amount of CTAB is varied for a particular amount of Y2O3 powder. It is carried out to find the exact ratio of CTAB for better dispersion of Y2O3 powder in the electrolytic bath. Because the distribution of reinforcement in the matrix which is associated with the dispersion of Y2O3 powder in the electrolyte is as important as the amount of reinforcement in the solder matrix. For the synthesis of nanocomposite solder, the optimum ratio of CTAB to Y2O3 is found to be 1:1. After the synthesis of nanocomposite solder, the influence of Y2O3 powder on the melting temperature of the solder is also studied. Incorporating Y2O3 has little effect on the melting point of the nanocomposite solder. Nanoindentation creep test results showed that the deposit at 0.2 A/cm2 (monolithic solder) has a lower creep resistance than the nanocomposite solders. Additionally, the creep resistance of the nanocomposite with a CTAB to Y2O3 ratio of 1:1 was higher.