Though molybdenum dioxide (MoO2) has attractive properties, conductivity is still threat to its implementation as it is very low compared to graphite. Herein, we have come up with MoO2‐rGO nanocomposite to mitigate this drawback, where nano sized MoO2 particles have been synthesised and supported with graphene sheets. Several physicochemical characterization techniques have been used to confirm the desired state of the obtained material. In this report, rGO supported MoO2 nanoparticles have been investigated as an anode for lithium ion battery and its electrochemical properties have been extensively studied. The new architecture exhibits excellent electrochemical performance by delivering a high discharge capacity of 1205 mA h g−1 even after 100 cycles. It also exhibits good rate capability by delivering discharge capacities of 809, 753, 675 mA h g−1 at current rates of 1 C, 3 C and 5 C, respectively.