Si/graphite composite materials embedded with polymer microsphere as an elastic inactive phase were prepared by high-energy mechanical milling and investigated as a high capacity anode material for lithium rechargeable battery. Improved capacity retention was achieved with the composite. In situ measurement of the electrode thickness revealed that the swelling of the electrode became smaller with the increase of polymer microsphere content. It is believed that polymer microsphere played a buffering role of accommodating the mechanical strains induced by silicon expansion during lithiation, resulting in the suppression of the volume expansion of the electrode, which improved the cycle performance of the electrode.