A Li2ZrO3 coating technique was successfully applied to layered lithium transition metal mixed oxide LiNi0.4Co0.2Mn0.4O2 to enhance its electrochemical performance using Zr(NO3)4·5H2O and CH3COOLi·2H2O as coating reagents. The existence of Li2ZrO3 coating layer was identified by X-ray diffraction (XRD), Environmental scanning electron microscopy (ESEM), Transmission electron microscopy (TEM), and X-ray photoelectron spectroscopy (XPS). The Li2ZrO3 shell decreased the exposed area of electrode core to electrolyte, and thus suppressed the dissolution of transition metal and side reaction between them. In addition, coating with Li2ZrO3 improved the ion transportation characteristics. As a result, an enhanced electrochemical performance in terms of discharge capacity, rate performance, and capacity retention were obtained, especially at higher temperature of 50°C. Analysis of electrochemical impedance spectra (EIS) showed that the coated material exhibited lower charge transfer resistance (R ct) with less variation during cycling, which indicated the electrode/electrolyte interface of coated material was more favorable and stable for electrochemical reaction.