Interconnected LiFePO4/carbon nanoparticles for Li-ion battery cathode have been fabricated by sol-gel method followed by a carbon coating process involving redox reactions. The carbon layers coated on the LiFePO4 nanoparticles not only served as a protection layer but also supplied fast electrons by building a 3D conductive network. As a cooperation, LiFePO4 nanoparticles encapsulated in interconnected conductive carbon layers provided the electrode reactions with fast lithium ions by offering the lithium ions shortening and unobstructed pathways. Field emission scanning electron microscopy (FESEM) and X-ray diffraction (XRD) tests showed optimized morphology. Electrochemical characterizations including galvanostatic charge/discharge, cyclic voltammetry (CV), and electrochemical impedance spectroscopy (EIS) tests, together with impedance parameters calculated, all indicated better electrochemical performance and excellent cycling performance at high rate (with less than 9.5% discharge capacity loss over 2000 cycles, the coulombic efficiency maintained about 100%).