In this article, we report the fabrication and characterization of $CNT/Co_3O_4$ nanocomposite for lithium ion batteries. We expected that the composition with CNT is effective method to compensate for the low electronic conductivity of $Co_3O_4$ and suppress the stress from phase transition of $Co_3O_4$ during cycling. $CNT/Co_3O_4$ nanocomposites were composed of nano-sized $Co_3O_4$ particles, which were homogeneously distributed on the surface of CNTs. The $CNT/Co_3O_4$ electrode presented higher capacity than commercial graphite, good rate capability and stable cyclic performance. This implies that the $CNT/Co_3O_4$ could be a promising anode material for lithium ion batteries.