A novel method of electroless silver coating on copper powders was reported, in which hydrazine was used as the reducing agent, and had some advantages such was used as inhibiting the substitution reaction and reducing consumption of copper powders. In the processes of sensitization and activation, AgNO 3 replaces the conventional PdCl 2 , which solves the impurity of bath. Oxide film on the surface of copper powders was tested by chemical analysis. Ag element tested by XRD and XRF is in the form of Ag 0 and exists on the surface of copper powders, which acts as catalyzer in reduction reaction. Morphology and composition of the coating were characterized by SEM and XRD respectively.