SnO₂-reduced graphene oxide nanocomposite in the form of a free-standing film was prepared by simple chemical synthesis. The homogeneous and compact formation of the nanocomposite of SnO₂ and reduced graphene oxide was confirmed by various analysis methods. When incorporated as anode in lithium-ion batteries, a high capacity (503 mAh g^-1) and very stable cycle life were observed. These favorable properties probably arise from the efficient relaxation of high mechanical stress by the reduced graphene-oxide layers during the lithiation-delithiation process within SnO₂.​