A powder-in-tube (PIT) process employing groove and flat rolling has been successfully used for the fabrication of Bi₂Sr₂CaCu₂O_x (Bi-2212)/Ag tapes. The tapes were melt processed at 890 °C, which was followed by controlled cooling to 855 °C in order to complete the phase formation. The effect of processing atmosphere (air versus oxygen) on the current transport properties, and microstructure were studied. The average J_c at 4.2 K, self-field with 1 µV cm^-1 criteria, was higher for tapes processed in oxygen (5×10⁴ A cm^-2) compared to tapes processed in air (6.25×10³ A cm^-2). Microstructural analysis on the heat treated tapes revealed that the oxygen processed tapes had a higher Bi-2212 content, better grain alignment and smaller secondary phases compared to the tapes processed in air. Bubble defects, which severely deteriorate I_c of the tapes, were more pronounced for tapes processed in oxygen. TEM studies on the Bi-2212-Ag interface illustrate the oxygen heat treated tapes to have sharp and straight interface compared to air processed tapes which exhibit a tendency to facet in the direction of [0 0 1]/[2 0 6].