A conversion‐reaction‐based nanosized Cu2P2O7–carbon composite is investigated as a novel cathode material with superior capacity for lithium‐ion batteries. To overcome the sluggish kinetics of the conversion reaction, the nanosized Cu2P2O7–carbon composite is prepared by high‐energy ball‐milling of Cu2P2O7 and conductive carbon to achieve simultaneous nanosizing and carbon mixing. The nanosized Cu2P2O7–carbon composite exhibits a large specific capacity of ≈355 mAh g−1 with an average operation voltage of ≈2.8 V (vs Li+/Li). Moreover, even at 10C (1C = 355 mA g−1), the composite delivers a capacity of ≈215 mAh g−1, corresponding to ≈60% of its theoretical capacity. For 400 cycles at 1C, the nanosized Cu2P2O7–carbon composite exhibits capacity retention of ≈72% compared with the initial capacity as well as high Coulombic efficiency of more than 99%. The reversible conversion reaction mechanism of the nanosized Cu2P2O7–carbon composite under the Li‐cell system is confirmed using various techniques, including operando/ex situ X‐ray diffraction, X‐ray absorption near edge structure spectroscopy, extended X‐ray absorption fine structure spectroscopy, and transmission electron microscopy. It is verified that Cu2P2O7 is converted into Li4P2O7 and metallic Cu0 on discharge and reversibly recovered to Cu2P2O7 on charge.