Carbon-encapsulated CoFe2O4/graphene (C@CFO/G) nanocomposite was prepared by a facile hydrothermal strategy and subsequently in situ pyrolysis process. The small-size CoFe2O4 nanoparticles encapsulated within thin carbon shells anchor onto G nanosheets with crumpled and waved structure for C@CFO/G nanocomposite. The as-synthesized nanocomposite delivers high reversible capacity of 925.6 mAh g(-1) at 100 mA g(-1) after 50 cycles. It exhibits rate capability of 772.3, 430.6 and 305.3 mA hg(-1), even at 200, 800 and 1600 mA g(-1), respectively, indicating outstanding rate capability and cycle stability. The improved electrochemical performance is ascribed to the well-designed structure with carbon shells and two dimension G nanosheets. The C@CFO/G nanocomposite will be an ideal candidate of anode material for lithium ion batteries. (C) 2013 Elsevier Ltd. All rights reserved.