AbstractIn sodium‐ion batteries (SIBs), the low initial coulombic efficiency (ICE) is commonly induced by irreversible phase conversion and difficult desodiation, especially on transition metal compounds (TMCs). Yet the underlying physicochemical mechanism of poor reaction reversibility is still a controversial issue. Herein, by using in situ transmission electron microscopy and in situ X‐ray diffraction, we demonstrate the irreversible conversion of NiCoP@C is caused by the rapid migration of P in carbon layer and preferential formation of isolated Na₃P during discharge. By modifying the carbon coating layer, the migration of Ni/Co/P atoms is inhibited, thus the improvement of ICE and cycle stability is realized. The inhibiting of fast atom migration which induces component separation and rapid performance degradation might be applied to a wide range of electrode materials, and guides the development of advanced SIBs.