Abstract: The microstructure development of Pd77.5Au6Si16.5 alloy droplet solidified in a drop tube process was studied. It was found that two distinct microstructures, i.e. (Pd,Au)3Si primary phase and Pd+(Pd,Au)3Si eutectic can be obtained when the droplet diameter is within the range between 2.3~0.4 mm. The morpologies of the (Pd,Au)3Si developed from dendrite trunk-like with single branching only into dendrite cluster-like with ternary branching with the decrease of the droplet diameter. When the droplet diameter is about 0.25 mm, the primary phase (Pd,Au)3Si almost disappears and the microstructure mainly shows Pd+(Pd,Au)3Si eutectic. The morphology of the eutectic transforms from fiber-like to plate-like with the decrease of the droplet diameter in the range between 2.3-0.25 mm. When the droplet diameter is about 0.19 mm, the microstructure is only the single phase of Pd solid solution