Reciprocating extrusion combined with simple powder compaction was used to produce electrical contact SnO2/Ag composites from Ag and SnO2 powders with improved properties. The SnO2 particles were uniformly dispersed in the Ag matrix after 20 passes of extrusion. The hardness of the composites increased with extrusion passes and leveled off after ten passes, whereas the electrical conductivity decreased slowly after five passes. The variation of the coefficient of thermal expansion with temperature revealed that SnO2/Ag interface strength increased with extrusion passes and was greatest after 20 passes. The SnO2/Ag composites with 20 passes showed the best electrical contact properties in which there was no mass loss through mass transfer from cathode to anode during the make-break erosion test at both low and high current conditions. On the other hand, SnO2/Ag composites with one pass and commercial SnO2-In2O3/Ag specimens had an apparent mass loss under the same condition. Electrical contact composites produced by the present method are promising in electrical contact applications in consideration of cost and performance.