The interfacial reactions between the Y1Ba2Cu3O7−x (123) compound and a Ag70Pd30 alloy have been studied for several heat treatments below and above the melting point of the superconductor. Scanning and transmission electron microscopy, energy dispersive x-ray analysis, Auger spectroscopy, and x-ray diffraction have been used to characterize the reaction products. For the heat treatments below the melting point of the superconductor (950 °C), the Ba and Cu of the 123 compound migrate to the interface and react with the Pd to form a body-centered cubic phase Ba(Pd, Cu)O2. This structure is formed by substitution of Cu by Pd on the Cu+2 sites of the BaCuO2 structure (Im3m space group). CuO is also found in some areas as a product of the reaction. For the thermal treatments above the melting point of the superconductor, the reaction products are the same but, in this case, a large number of Y2BaCuO5 precipitates are found in the bulk of the superconductor near the interface. Pure Ag particles have also been observed in the 123 compound at distances relatively far from the interface.