The effect of activated carbon (AC) surface functional groups on the cycle performance of lead-carbon batteries was studied from hydrogen evolution and nano-lead electrodeposition on the surface of the AC. AC materials were modified by oxidation methods (hot air or acid treatment) to increase acidic groups and reduction processes (alkaline treatment or heat treatment in N2) to increase alkaline groups. The surface functional groups were characterized by X-ray photoelectron spectroscopy and Boehm titration method. We used cyclic voltammetry and a three-electrode system to prepare nano-lead deposits on the surface of the AC, and studied its influence on hydrogen evolution of AC. The results show that acidic groups are beneficial to lead electrodeposition. In addition, the lead deposits with high activity covering the surface of AC could inhibit hydrogen evolution and the irreversible sulfation in lead-carbon batteries, and then result in longer cycle life under High-rate Partial-state-of-Charge conditions.