We report a facile strategy to synthesize SnO₂ nanoparticles dispersed nitrogen doped graphene (SnO₂/NG). Nitrogen doping of graphene was carried out by the pyrolysis of polypyrrole coated poly(sodium 4-styrenesulfonate) functionalized graphene. The SnO₂ nanoparticles are dispersed over nitrogen doped graphene by a modified polyol reduction method. The dispersed SnO₂ nanoparticles are 2–3 nm in size with homogeneous dispersion and good crystallinity. The SnO₂/NG as an anode material in Li ion batteries displays superior reversible capacity, very good rate capability and excellent cyclic performance (1220 mA h g⁻¹ after 100^th cycle). The impedance measurements show that nitrogen doping can significantly reduce the charge transfer resistance of graphene based electrodes. The factors contributing to the excellent electrochemical performance of the SnO₂/NG anode material is discussed. The present work opens a new pathway for the development of metal or metal oxide nanoparticle–nitrogen doped carbon nanostructure based nanocomposites for high performance electrochemical energy devices.