Ag/diamond contacts alloys with a nanoscaled microstructure of diamond particles was fabricated by high-energy ball milling, hot-pressing and sintering. Morphology and performance of the alloys were studied. The results show that the nanoscaled diamond particle dispersed inside Ag grains homogeneously. The morphological and crystal structure of diamond has no change after the prepare process. The density of hot-pressed block is more than 94% of the theory density. Different contents of diamond can lead to a hardness variant of the Ag/diamond alloy.