The mechanisms of electrochemical capacity retention and eventual degradation in composite anodes prepared by electrodepositing nanocrystalline Sn coating on carbon fibres (CF), Sn-CF, were studied using in situ optical microscopy, high-resolution scanning and transmission electron microscopy. Specific capacity changes of Sn-CF anodes (vs Li/Li + ) were observed to take place in three stages: during the first two galvanostatic cycles, a rapid capacity decrease (from 1045 to 930 mAh g À1 ) occurred, which was followed by a steady-state stage where the capacity remained constant at 922 ± 22 mAh g À1 . The fast capacity drop of Sn-CF in the first cycle was attributed to the partial decohesion of Sn from CFs although the carbon substrate remained unaffected due to formation of a layer from the solid electrolyte reduction products. The pure Sn electrode with a higher initial specific capacity than the Sn-CF displayed a rapid decrease in the same range, whereas the specific capacity of the uncoated CF was already much lower as the fibres were severely damaged in the first cycle.