100 MeV Ag ions have been used to study the swift heavy ion (SHI) induced modification in Te/Bi bilayer system. The samples were analysed using Rutherford backscattering spectroscopy (RBS), Atomic force microscopy (AFM) and X-ray diffractometer (XRD). The elemental depth study with RBS results show a strong mixing between the top Te layer and the underlying Bi layer on irradiation. Surface roughness as calculated by AFM is found to increase from 8 to 30 nm on irradiation for the fluence 3x10 13 ions/cm 2 .  XRD results confirm the formation of Bi-Te alloy phases on mixing and are expected to be formed due to the interfacial reaction taking place within the molten ion tracks. Ion beam mixing has the potential to induce the formation Bi-Te alloy thin films which are the promising candidate for thermoelectric applications near room temperature.