Commercial low-gold dental casting alloy composed of Ag-Pd-In-Au-Zn was studied to clarify the age-hardening mechanism and related microstructural changes. The hardness of solution-treated specimen began to increase and reached the maximum value with ageing time, and then the maximum hardness value decreased by further ageing. The changes of X-ray diffraction (XRD) pattern during isothermal ageing revealed that the age hardening was not caused by phase transformation. By comparing the age-hardening curve with the changes in full-width at half-maximum of the XRD peaks at each ageing time, it was revealed that the coherency strains were formed in the Ag-rich matrix, which contributed to the hardness increase during ageing. From scanning electron microscopic observation and electron probe microanalysis, it was clarified that fine particle-like structures composed of InPd containing small amount of Zn gathered by diffusion in the Ag-rich matrix, and the coherency strains which formed during that time caused the hardness increase in the early stage of age-hardening process. The coherency strains were released by the progress of coarsening of Zn-containing InPd dendrite during further ageing, which caused the overaging in the later stage of age-hardening process.