Scanning tunneling microscopy has been used to evaluate the overall morphology and growth conditions for Ag ordered overlayer and island films on Si(111), and to determine the nature of the √3×√3 Ag/Si(111) structure. Current image tunneling spectroscopy (CITS) is used to examine the energy‐dependent tunneling and evaluate possible model structures for the √3×√3 structure. Support is found for a √3×√3 structure composed of Ag trimers embedded below the top layer of threefold coordinated Si atoms. The surface electronic structure for these √3 structures shows a 1.2 eV gap, and exhibits very few intrinsic states nearEF. The few defects observed in the √3 areas of this surface introduce deep levels while the most dominant tunneling features nearEFappear to be associated with Ag islands that coexist with √3 areas. The implications of the surface perfection and local electronic structure to Schottky barrier formation are discussed.