Multi-walled carbon nanotube (MWNT)/$SnO_2$ nano-composite (MSC) for the anode electrode of a Li-ion battery was prepared using a homogeneous precipitation method with $SnCl_2$ precursors in the presence of MWNT. XRD results indicate that when annealed in Ar at $400^{circ}C$, $Sn_6O_4(OH)_4$ was fully converted to $SnO_2$ phases. TEM observations showed that most of the $SnO_2$ nanoparticles were deposited directly on the outside surface of the MWNT. The electrochemical performance of the MSC electrode showed higher specific capacities than a MWNT and better cycleability than a nano-$SnO_2$ electrode. The electrochemical performance of the MSC electrode improved because the MWNT in the MSC electrode absorbed the mechanical stress induced from a volume change during alloying and de-alloying reactions with lithium, leading to an increase in the electrical conductivity of the composite material.