We present an effective approach to favorably modify the electronic structure of PbSe using Ag doping coupled with SrSe or BaSe alloying. The Ag 4d states make acontribution to in the top of the heavy hole valence band and raise its energy.The Sr and Ba atoms diminish the contribution of Pb 6s 2 states and decrease the energy of the light hole valence band. This electronic structure modification increases the density-of-states effective mass,a nd strongly enhances the thermoelectric performance.M oreover,t he Ag-richn anoscale precipitates,d iscordant Ag atoms,a nd Pb/Sr,P b/Ba point defects in the PbSe matrix work together to reduce the lattice thermal conductivity,r esulting ar ecordh igh average ZT avg of around 0.86 over 400-923 K.