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This paper investigates the degradation behaviour of lead-free Sn96.5Ag3.0Cu0.5 solder. A series of isothermal mechanical cycling tests under different conditions has been conducted. The tests were monitored in-situ with a high magnification camera system. Optical observations are presented from selected tests, showing the surface morphology during testing. In addition to the optical investigation, the load drop behaviour of the samples is analysed. The result is a deeper insight into the microscale failure behaviour of SAC305 during isothermal cycling.