Porous tin oxide and reduced graphene oxide nanocomposite is prepared by in situ growth tin oxide (SnO2) nanoparticles on the surface of well reduced graphene oxide (rGO) under hydrothermal condition followed by annealing treatment. The SnO2 nanoparticles are crystallized and uniform with the sizes of about 4–8 nm, the rGO matrix is constructed by 7–8 monosheets of graphene, and there are C−O‐Sn bonds between the SnO2 and rGO matrix. The resultant A‐SnO2/rGO (annealed SnO2 and rGO) nanocomposite has a large specific surface area of 161.8 m2 g−1 with the pore size distribution mainly in the micropore and small mesopore ranges (1‐11 nm). Used as the anode of lithium ion battery, the A‐SnO2/rGO electrode may deliver a high initial discharge capacity of 1871.3 mAh g−1 at 0.1 C, presenting its large specific capacity property. When the current density enhances to 5 C, a good discharge capacity of 262.2 mAh g−1 can be obtained, showing its superior rate capability. A fascinating large discharge capacity of 885.2 mAh g−1 may be obtained after 150 cycles at 0.1 C and a discharge capacity of 414.2 mAh g−1 can be gotten after 300 cycles at 1 C, indicating its excellent cyclic stability.