Base-metal-electrode (BME) ceramic capacitors are being investigated for possible use in high-reliability spacelevel applications. This paper focuses on how BME capacitors construction and microstructure affects their lifetime and reliability. Examination of the construction and microstructure of commercial off-the-shelf (COTS) BME capacitors reveals great variance in dielectric layer thickness, even among BME capacitors with the same rated voltage. Compared to PME (precious-metal-electrode) capacitors, BME capacitors exhibit a denser and more uniform microstructure, with an average grain size between 0.3 and 0.5 m, which is much less than that of most PME capacitors. BME capacitors can be fabricated with more internal electrode layers and thinner dielectric layers than PME capacitors because they have a fine-grained microstructure and do not shrink much during ceramic sintering. This makes it possible for BME capacitors to achieve a very high capacitance volumetric efficiency. The reliability of BME and PME capacitors was investigated using highly accelerated life testing (HALT). Most BME capacitors were found to fail with an early avalanche breakdown, followed by a regular dielectric wearout failure during the HALT test. When most of the early failures, characterized with avalanche breakdown, were removed, BME capacitors exhibited a minimum mean time-to-failure (MTTF) of more than 105 years at room temperature and rated voltage. Dielectric thickness was found to be a critical parameter for the reliability of BME capacitors. The number of stacked grains in a dielectric layer appears to play a significant role in determining BME capacitor reliability. Although dielectric layer thickness varies for a given rated voltage in BME capacitors, the number of stacked grains is relatively consistent, typically around 12 for a number of BME capacitors with a rated voltage of 25V. This may suggest that the number of grains per dielectric layer is more critical than the thickness itself for determining the rated voltage and the life expectancy of the BME capacitor. The leakage current characterization and the failure analysis results suggest that most of these early avalanche failures are due to the extrinsic minor construction defects introduced during fabrication of BME capacitors. The concentration of the extrinsic defects must be reduced if the BME capacitors are considered for high reliability applications. There are two approaches that can reduce or prevent the occurrence of early failure in BME capacitors: (1) to reduce the defect concentration with improved processing control; (2) to prevent the use of BME capacitors under harsh external stress levels so that the extrinsic defects will never be triggered for a failure. In order to do so appropriate dielectric layer thickness must be determined for a given rated voltage.