LiFePO₄ was prepared by SpraySdrying technique, and then graphene coated LiFePO4 nanocomposites were synthesized through microwave hydrothermal method under low temperature. The morphology, structural properties and particle size distribution of the samples were characterized by scanning electron microscopy (SEM), X-ray diffraction (XRD) and Dynamic Laser Scattering(DLS). Served as cathode materials for Li-ion batteries, the electrochemical performance and dynamic characteristics of electrode process were systematically investigated using constant-current charge-discharge techniques, cyclic voltammetric (CV) and electrochemical impedance spectra (EIS). Compared with LiFePO₄ electrode, graphene coated LiFePO₄ exhibited superior rate capability (125.4 mAh?g-1 at 5C) and endurable cycle life (about 95% capacitance retained after 100 cycles at 5C). The optimum performances of graphene coated LiFePO₄ are attributed to its typical nanocomposite structure, which not only remarkably enhance the electrochemical reversibility but also obviously reduce the charge transfer resistance. The results of this study may pave an effective strategy to improve the electrochemical performance of LiFePO₄ electrode for batteries.