Carbon Nanocapsules (CNCs) were investigated for their electrocatalytic performances for the oxygen reduction reaction in alkaline electrolyte. With an average diameter of 10–30 nm, the CNCs are composed of graphene layers encapsulating a hollow core. A gas diffusion electrode (GDE) made of CNCs revealed a much enhanced i–V polarization response than that of Vulcan XC72. However, its performance was moderately lower than that of Black Pearls 2000. In addition, the CNCs were impregnated with nanoparticles of Ag, MnOx and CoOx. The i–V and galvanostatic results of the catalyzed CNCs indicated significant improvements over that of noncatalyzed CNCs. For example, a Ag–CNC derived GDE was capable of delivering 1.03 and 0.88 V at current densities of 100  and 200 mA cm−2, respectively. Our study offers direct evidence that the CNCs not only exhibit unique electrocatalytic abilities but also function superbly as an electrocatalyst support.