Bi2Sr2Co1.8Ox/Ag composites with small amounts of Ag have been synthesized by a sol gel via nitrates reaction and directionally grown from the melt. Some of the obtained samples were annealed in order to obtain the thermoelectric phase as the major one. As-grown and annealed samples were microstructurally characterized to determine the phases distribution and alignment. Moreover, thermoelectric and mechanical characteristics of annealed samples were determined by the four-probe technique and by three point flexural strength tests, respectively. Scanning electron microscopy revealed that Ag particles appear dispersed among well oriented ceramic grains with large size, providing a plastic flow region which increases the flexural strength for the optimally Ag added samples (1 wt.%). The composites electrical resistivity is lower than that of pure Bi2Sr2Co1.8Ox while Ag addition does not significantly affect thermopower values. The resistivity reduction leads to power factor improvements of 50%, compared with pure samples, for Ag additions of 1 wt.% Ag. (C) 2012 Elsevier Ltd. All rights reserved.