The thermal reliability of Sn-3Ag-0.5Cu/Au/Pd(P)/Cu solder joints was evaluated in this study. After reflow and subsequent solid-state aging (180°C), the reaction product species at the interface included Cu6Sn5 [or (Cu,Pd)6Sn5] and Cu3Sn, and their growth was strongly dependent on the Pd(P) thickness, δPd(P). As δPd(P) increased, the growth of Cu6Sn5 was significantly enhanced, while that of Cu3Sn was suppressed. Computer coupling of phase diagrams and thermochemistry (CALPHAD) analysis showed that minor incorporation of Pd (~2 at.%) into the Cu6Sn5 phase decreased the Gibbs free energy of Cu6Sn5 from −7339 J/mol to −9191 J/mol. This effect might enhance Sn diffusion in Cu6Sn5 but diminish Cu diffusion in Cu3Sn, thereby facilitating the growth of Cu6Sn5 but retarding that of Cu3Sn. High-speed ball shear (HSBS) test results showed that the mechanical properties of the solder joints were slightly enhanced by an increase in δPd(P). These findings suggest that direct deposition of Au/Pd(P) bilayers over the Cu pads can effectively modify the mechanical reliability of solder joints.