We report the synthesis, characterization, and performance evaluation of tungsten (W) incorporated vanadium oxide (VO2) nanocomposite cathode material for improved lithium storage performance. VO2 nanorods, 100–200 nm in diameter and 1–3 μm in length are synthesized using a hydrothermal method. W incorporation at different weight percent results in the VO2 morphology shifting from rods to a sheet type structure. The lithium storage performance of VO2 has improved remarkably by increasing the loading of W to an optimal level, which influence the intercalation/ deintercalation of lithium ions into the expanded lattices of VO2. The maximum specific capacity observed for the optimal VO2/W4 composite was 381 mAh/g at a current density of 0.1 C. Cyclic voltammetry measurements showed the presence of an electroactive V3+/V4+ redox couple, leading to lower peak separation and voltage polarization differences. Superior charge storage performance was observed with the VO2/W4 composite as compared to the VO2 based devices.