Fe2O3-graphite (Fe2O3-G) composites have been facilely and effectively synthesized via ball milling. Structural features and electrochemical properties of the Fe2O3-G composites as anodes for lithium-ion batteries are investigated. The Fe2O3-G composites benefit from the close contact of nanocrystalline Fe2O3 with the graphite matrix, which improves the electronic conductivity and restrains the volume variation during cycling. The composite with 20% graphite shows the highest reversible capacity up to 491.1 mAh g−1 after 55 cycles with good rate capability. Due to the superior electrochemical performance, the Fe2O3-G composites prepared via ball milling could be promising as anode materials with high capacity, low-cost for lithium-ion batteries.