LiFePO4/graphene nanocomposite was successfully synthesized by rheological phase method and its electrochemical properties as the cathode materials for lithium ion batteries were measured. As the iron source in the synthesis, FeOOH nanorods anchored on graphene were first synthesized. The FeOOH nanorods precursors and the final LiFePO4/graphene nanocomposite products were characterized by XRD, SEM, and TEM. While the FeOOH precursors were nanorods with 5-10 nm in diameter and 10-50 nm in length, the LiFePO4 were nanoparticles with 20-100 nm in size. Compared with the electrochemical properties of LiFePO4 particles without graphene nanosheets, it is clear that the graphene nanosheets can improve the performances of LiFePO4 as the cathode material for lithium ion batteries. The as-synthesized LiFePO4/graphene nanocomposite showed high capacities and good cyclabilities. When measured at room temperature and at the rate of 0.1C (1C = 170 mA g−1), the composite showed a discharge capacity of 156 mA h g−1 in the first cycle and a capacity retention of 96% after 15 cycles. The improved performances of the composite are believed to be the result of the three-dimensional conducting network formed by the flexible and planar graphene nanosheets.