We report a maximal figure of merit (ZT) value of 1.1 at 600 K was obtained for the sample of which x = 0.03, representing an enhancement greater than 20% compared with a pristine AgSbTe2 sample. This favorable thermoelectric performance originated from the optimal Sn2+ substitution for Sb3+ in AgSbTe2, which not only increased electrical conductivity but also led to a substantial reduction in thermal conductivity that was likely caused by an enhanced phonon-scattering mechanism through the combined effects of lattice defects and the presence of Ag2Te nanoprecipitates dispersed in the matrix.