In this study, we report the microstructure and characteristics of Ag-SnO2-Bi2O3 contact materials using a controlled milling process with a subsequent compaction process. Using magnetic pulsed compaction (MPC), the milled Ag-SnO2-Bi2O3 powders have been consolidated into bulk samples. The effects of the compaction conditions on the microstructure and characteristics have been investigated in detail. The nanoscale SnO2 phase and microscale Bi2O3 phase are well-distributed homogeneously in the Ag matrix after the consolidation process. The successful consolidation of Ag-SnO2-Bi2O3 contact materials was achieved by an MPC process with subsequent atmospheric sintering, after which the hardness and electrical conductivity of the Ag-SnO2-Bi2O3 contact materials were found to be 62–75 HV and 52–63% IACS, respectively, which is related to the interfacial stability between the Ag matrix, the SnO2 phase, and the Bi2O3 phase.