Mechanical properties of Sn-0.7 wt.%Cu lead-free solder alloy reinforced with 0 vol.%, 1 vol.%, 2 vol.%, and 3 vol.% 100-nm SiC particles have been assessed using the shear punch testing technique in the temperature range from 25 degrees C to 125 degrees C. The composite materials were fabricated by the powder metallurgy route by blending, compacting, sintering, and finally extrusion. The 2 vol.% SiC-containing composite showed superior mechanical properties. In all conditions, the shear strength was adversely affected by increasing test temperature, and the 2 vol.% SiC-containing composite showed superior mechanical properties. Depending on the test temperature, the shear yield stress and ultimate shear strength increased, respectively, by 3 MPa to 4 MPa and 4 MPa to 5.5 MPa, in the composite materials. The strength enhancement was mostly attributed to the Orowan particle strengthening mechanism due to the SiC nanoparticles, and to a lesser extent to the coefficient of thermal expansion mismatch between the particles and matrix in the composite solder. A modified shear lag model was used to predict the total strengthening achieved by particle addition, based on the contribution of each of the above mechanisms.