A urea-based hydrothermal approach has been applied to synthesize LiNi0.5Co0.2Mn0.3O2 (NCM523) cathode materials with focus on investigating the influence of the reaction conditions on their electrochemical performance. The compositions of the carbonate precursor are precisely controlled by tuning urea concentration, hydrothermal reaction temperature, and time. The mole ratio between urea and transition metal ions and reaction temperature influence the composition of the precursor; while the reaction time influences the electrochemical performance of the final product. The optimized materials show better cyclability and rate capability compared with the materials synthesized with other hydrothermal reaction conditions. The enhancement is attributed to the larger Li+ diffusion coefficient and lower charge transfer resistance, which are due to the lower degree of Li/Ni cation mixing and more uniform distribution of transition metal ions. This work is a systematic study on the synthesis of NCM523 cathode material by a urea-based hydrothermal approach.