The reaction between metallic Ag and PbS1.18(TiS2)(n), n=l, 2, misfit layer compounds has been investigated by electrochemical technique, X-ray powder analysis and transmission electron microscopy. It was found that silver intercalation is possible only in the compound with n = 2. The thermodynamic behavior and location of phase boundaries were studied in the temperature range 400-650 K. DC-conductivity and magnetic-susceptibility measurements were performed, and the data can be interpreted as an appearance of small polarons during silver insertion.