The single-filled skutterudite Yb 0.2 Co 4 Sb 12 has been long known as a promising bulk thermoelectric material. In this work, we adopted a melting-milling-hot pressing procedure to prepare nanocomposites that consist of a micrometer-grained Yb 0.2 Co 4 Sb 12 matrix and well-dispersed AgSbTe 2 nanoinclusions on the matrix grain boundaries. Different weight percentages of AgSbTe 2 inclusions were added to optimize the thermoelectric performance. We found that the addition of AgSbTe 2 nanoinclusions systematically and simultaneously optimized the otherwise adversely inter-dependent electrical conductivity, Seebeck coefficient and thermal conductivity. In particular, the significantly enhanced carrier mobility led to a $3-fold reduction of the electrical resistivity. Meanwhile the absolute value of Seebeck coefficient was enhanced via the energy filtering effect at the matrix-nanoinclusion interfaces. Moreover there is a topological crossover of the AgSbTe 2 inclusions from isolated nanoparticles to a nano-plating or nano-coating between 6 wt% and 8 wt% of nanoinclusions. Above the crossover, further addition of nanoinclusions degraded the Seebeck coefficient and the electrical conductivity. Meanwhile, the addition of nanoinclusions generally reduced the lattice thermal conductivity. As a result, the power factor of the 6 wt% sample was $7 times larger than that of the nanoinclusion-free sample, yielding a room temperature figure of merit ZT $ 0.51.