The ever increasing power density in modern semiconductor devices requires heat dissipation solution such as heat sink to remove heat away from the device. A compressive loading is usually applied to reduce the interfacial thermal resistance between package and heat sink. In this paper, both experimental approaches and numerical modeling were employed to study the effect of compressive loading on the interconnect reliability under thermal cycling conditions. A special loading fixture which simulated the heat sink was designed to apply compressive loading to the package. The JEDEC standard thermal cycle tests were performed and the resistance of daisy chained circuits was in situ measured. The time to crack initiation and time to permanent failure were identified separately based on in situ resistance measurement results. Failure analysis has been performed to identify the failure modes of solder joint with and without the presence of compressive loading. A finite element based thermal-fatigue life prediction model for SAC305 solder joint under compressive loading was also developed to understand the thermal-fatigue crack behaviors of solder joint and successfully validated with the experimental results.