The dissolution of NiO cathodes during cell operation is a limiting factor to the successful commercialization of molten carbonate fuel cells (MCFCs). Lithium cobalt oxide coating onto the porous nickel electrode has been adopted to modify the conventional MCFC cathode which id believed to increase the stability of the cathodes in the carbonate melt. The material used for surface modification should possess thermodynamic stability in the molten carbonate and also should be electro catalytically active for MCFC reactions. Lithium Cobalt oxide was coated on Ni cathode by a sol-gel coating. The morphology and the LiCoO 2 formation of LiCoO 2 coated NiO was studied using scanning electron microscopy and X-Ray diffraction studies respectively.