Fe2O3/nitrogen-doped graphene composite has been synthesized by one-step hydrothermal strategy. Fe2O3 particles with size about 100–200nm uniformly loaded on nitrogen-doped graphene. Fe2O3/nitrogen-doped graphene composite shows more excellent cycling performance than those of Fe2O3/pristine graphene composite and pure Fe2O3, delivering the reversible capacity of 1012mAhg−1 after 100 cycles. Moreover, it shows more superior rate capability, which attains 800mAhg−1 at the current density of 800mAg−1. The good electrochemical performance can be ascribed to the small particle size of Fe2O3, the synergistic effect between Fe2O3 particles and nitrogen-doped graphene, and the good electronic conductivity by introducing nitrogen-doped graphene to the composite.