Fine CdO nanoparticles and CdO/Carboxylated multiwalled carbon nanotubes (CNTs) nanocomposites are synthesized via a facile solution method for the first time and characterized by X-ray diffraction, transmission electron microscopy and electrochemical measurements. As a novel anode material for lithium-ion batteries, the nanosized CdO can delivers an initial capacity as high as 805mAh g−1. However, the capacity retention of pure CdO is poor. By incorporating CNTs and water soluble sodium alginate binder, the CdO could deliver a reversible capacity of 810 mAh g−1 up to 100 cycles and a capacity of 720 mAh g−1 even at the rate of 1500mAg−1. To better understand the mechanism of the improvements, ex-situ SEM and Energy-dispersive X-ray spectroscopy (EDX) measurements are performed. Our findings would shed new light on optimizing the electrochemical performances of other electrodes for lithium-ion batteries and the anodes of Ni-Cd batteries.