Olivine lithium iron phosphate (LFPO) assimilated with reduced grapheme oxide (rGO) was prepared via an easy and cost-effective hydrothermal synthesis, and the resultant composites were employed as active positive electrode for lithium-ion batteries (LIBs). The structural and morphological features were studied by XRD, Raman, SEM, TEM and surface area analysis (BET). The electrochemical properties of the LFPO/rGO composite is evaluated by CV, CP and EIS. The LFPO/rGO composite with a high specific area (94.7 m2/g) was constituted with 74% LFPO and 26% rGO. The LFPO/rGO composite as a LIB cathode displayed a superior initial discharge capacity of 163.3 mAh/g at a current density of 0.2 C and sustained a capacity of 110.6 mAh/g at a high current density of 10 C for 150 consecutive cycles. The existence of highly conductive rGO and a short transportation span for both Li-ions and electrons made LFPO/rGO composite as a promising cathode in LIBs even at high rates.