A detailed analysis of the capacity fade of a battery/supercapacitor hybrid and a battery alone has been carried out at 55 °C by discharging them at three different pulse rates. The applied peak current amplitudes were 5C (7 A), 3C (4.2 A), and 1C (1.4 A), respectively. The results indicated that for hybrids the pulse discharge run time was extended for all pulse discharge rates. The ohmic resistances estimated as a function of the pulse discharge rates were smaller for hybrids when compared with those for batteries. The variation of the ohmic resistance under pulse discharge with cycling, irrespective of the pulse discharge rate was smaller for hybrids than that for the batteries. The batteries and hybrids cycled at the lowest pulse discharge rate (high pulse discharge time) have larger capacity fade when compared with the capacity fade of the batteries and the hybrids discharged using higher discharge rates (low pulse discharge time). Impedance, cyclic voltammogram, and the rate capability studies were carried out on batteries cycled alone and on batteries cycled as part of the hybrid. The battery showed larger increase in the interfacial impedance with cycling when compared with the hybrid system.