Using ascorbic acid as the reducing agent, AgNO 3 as the source of Ag, the ultrafine silver powder was prepared by liquid-phase reduction method. The optimal conditions to prepare the ultrafine silver powder were obtained by studying the effects of following factors, such as the selection of dispersant, the doses of dispersant and pH, on the dispersibility of silver powder under other constant conditions. The pure ultrafine silver powder with quasi-spherical shape and mean size of 1.15 m was synthesized under the optimal conditions of polyvinyl alcohol (PVA) as disperser, PVA/AgNO 3 mass ratio of 4:100 and pH 7 while maintaining other conditions exactly in the same circumstances, such as AgNO 3 concentration of 0.20 mol L -1 , ascorbic acid concentration of 0.15 mol L -1 and reaction temperature of 40 โข C. The ultrafine silver powder was characterized by SEM and XRD. And a PVA dispersive mechanism for preparing highly dispersive ultrafine silver powder, proved by the ultraviolet spectra, is that PVA absorbed on the surface of silver particles by coordination bond preventing the silver particles from diffusion and aggregation. In addition, the steric effect may help to reduce aggregation.