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Mg1-xAgxB2 with 0 < x < 10% has been synthesized by the solid-state reaction. The solid solubility limit of Ag at Mg site is around x = 0.5%, and the dissolving process of Ag in MgB2 depends on the starting material. The unit cell and Tc of the Mg1-xAgxB2 steadily decrease with doping level. The underlying mechanism of superconductivity suppression by silver doping can be attributed to the chemical pressure effect.