Micro thermoelectric devices (micro-TEDs) offer great potential for IoT and electronic thermal management. However, they face challenges with reliability under high current densities. This study elucidates the failure mechanisms of Bi2Te3-based micro-TEDs subjected to current shocks. Experimental results indicate that at a high current density of 1800 A/cm2, the internal resistance of micro-TEDs increased by 12.9 % to 2.034 Ω. This led to a 52.0 % decrease in maximum output power at a 20 K temperature difference, dropping to 1.53 mW. Additionally, as the frequency of ON/OFF current applied to micro-TED increases, the resistance growth rate jumped from 0.764 mΩ/h for slow power cycling to 2.328 mΩ/h for fast power cycling. This indicates that higher cycling frequencies exacerbate the degradation of the device. In-situ TEM analysis revealed that current-induced elemental diffusion and electrical stress release led to the formation of NiTe2 nanoparticles and intergranular fractures within the Bi2Te3 materials. These results indicate that interfacial degradation and subsequent grain delamination are primary causes to micro-TED failure under current shocks. These findings underscore the significance of considering electrical stress in micro-TED design to enhance reliability and performance for high-power applications.