The potential transient during pulse discharge is studied for ultra-thin silver oxide electrodes with special attention to the potential valleys. The potential valley appears in different ways depending on the history of charge and discharge undergone by the electrode and is attributed to highly resistive Ag2O layers. The latter may exist on the surface of silver substrate (current collector) or inside the particles of active material. Moreover, the resistive Ag2O layer may be partially reduced during current pulses and partially restored during pulse intervals, leading to complicated potential responses to the pulse discharge. To prevent the annoying potential valley, the silver electrode is suggested to be charged to an extent below the full conversion of Ag to Ag2O.