Ni-graphi~e composite powders were prepared by reduct ion of $Ni^{++}$ from arnmoniacal nickel sulfate solution on graphite core by hydrogen gas at elevated temperature and pressure. Effect of coating catalyst. Anthraquinone $(C_6H_4COC_6H_4 CO)$, on the reduction rate and the properties of nickel layer were investigated by SEM, X-ray, size and chemical analysis. 1nduct.ion period, a time lag between the ~njection of hydrogen gas and the start of the reduction, was 22 to 70 mins and was affected by the size and amount of Anthraquinone. Kickel layer deposited on the surface of graphite core material was composed of nickel nodules whose sizes were different with vari~ ous reduction conditions. Minimum diameter of nickel nodules was about 2-3$mu extrm m$.