In this work, Fe-Sn nanoparticles and its carbide counterpart, i.e. Fe-Sn/C nanoparticles were fabricated by DC arc-discharge method. The crystal structures, morphologies and cyclic performances of both samples were characterized by XRD, HRTEM and galvanostatic discharge/charge measurements. It is indicated that the main phases in two kinds of nanoparticles are FeSn2 and Sn. The sizes of Fe-Sn nanoparticles are in the range of 30∼100nm, while Fe-Sn/C nanoparticles are about 10∼50nm. Fe-Sn nanoparticles electrode exhibits the real discharge/charge specific capacities of 192/159 mAh g−1, those are gradually faded to near 11 mAh g−1 after 50 cycles. Nevertheless, Fe-Sn/C nanoparticles electrode has the real discharge/charge specific capacities of 557/517 mAh g−1, can maintain to 373 mAh g−1 after 50 cycles. The carbon additive in Fe-Sn/C nanoparticles was characterized to be a graphite-like shell, its excellent effects on suppression of the volume change and electrochemical performances were discussed.