The mechanical, electrical, and thermal expansion properties of carbon nanotube (CNT)-based silver and silver-palladium (10:1, w/w) alloy nanocomposites are reported. To tailor the properties of silver, CNTs were incorporated into a silver matrix by a modified molecular level-mixing process. CNTs interact weakly with silver because of their non-reactive nature and lack of mutual solubility. Therefore, palladium was utilized as an alloying element to improve interfacial adhesion. Comparative microstructural characterizations and property evaluations of the nanocomposites were performed. The structural characterizations revealed that decorated type-CNTs were dispersed, embedded, and anchored into the silver matrix. The experimental results indicated that the modification of the silver and silver-palladium nanocomposite with CNT resulted in increases in the hardness and Young’s modulus along with concomitant decreases in the electrical conductivity and the coefficient of thermal expansion (CTE). The hardness and Young’s modulus of the nanocomposites were increased by 30%–40% whereas the CTE was decreased to 50%–60% of the CTE of silver. The significantly improved CTE and the mechanical properties of the CNT-reinforced silver and silver-palladium nanocomposites are correlated with the intriguing properties of CNTs and with good interfacial adhesion between the CNTs and silver as a result of the fabrication process and the contact action of palladium as an alloying element.