With as-prepared SnO2 and Bi2Sn2O7 as reinforcing phase powder and chemical silver powder as matrix phase, series of Bi2Sn2O7 modified Ag/SnO2 electrical contacts were prepared by high energy ball milling assisted sintering process. The effects of Bi2Sn2O7 content, milling time and sintering parameters on the microstructure and physical properties of Ag/SnO2-Bi2Sn2O7 electrical contacts were investigated. The results show that with milling time ranged from 1h up to 12h, the morphologies of Ag/SnO2-(6 wt.%) Bi2Sn2O7 composite powder changed from granular to flake structure. The resistivity of Ag/SnO2-(6 wt.%) Bi2Sn2O7 electrical contact increased gradually but the density decreased. The increase of sintering temperature and the increase of Bi2Sn2O7 doping content could benifit for reducing the resistivity of Ag/SnO2-Bi2Sn2O7 contacts. With the Bi2Sn2O7 doping content of 12 wt.% and the sintering temperature at 900℃, the resistivity of Ag /(12 wt.%) Bi2Sn2O7 reaches the optimal value of 2.24 μ Ω·cm. According to the initial arc ablation testing after 50 cycles, compared with pure Ag/SnO2, the ablation area of the modified Ag/SnO2-Bi2Sn2O7 samples did not rapidly expand to the whole surface, and when the Bi2Sn2O7 content was 6 wt.%, the ablation area of Ag/SnO2-(6 wt.%) Bi2Sn2O7 sample is the smallest. While, with the Bi2Sn2O7 content of 12 wt.%, the Ag /(12 wt.%) Bi2Sn2O7 sample appeared obvious splash phenomenon, which may be due to its lower hardness of 82.38HV0.3.