Lithium-rich layered cathode materials have high specific capacities. However, some drawbacks such as low initial Coulombic efficiency (ICE) and severe capacity/voltage decay during repeated cycling hinder their practical applications. Herein, a pristine Li1.2Mn0.54Ni0.13Co0.13O2 (LMNCO) material is synthesized by the carbonate coprecipitation method and then the In2O3 surface modified LMNCO materials with different amounts of In2O3 are prepared by the facile solvent evaporation and calcination method. The In2O3-modified LMNCO material with 2 wt% In2O3 demonstrates the highest ICE and the best rate capability and cycle stability, which are much superior to those of the pristine LMNCO. This surface modified material exhibits the specific capacities of 268.2 and 109.1 mAh g−1 at the current rates of 0.1C and 5C, respectively. After cycling at 1C rate for 200 cycles, the discharge specific capacity is declined from 176.2 to 140.9 mAh g−1, giving capacity retention of 80.0%. The improved electrochemical performance is ascribed to the surface modification of a moderate amount of In2O3. This surface modification can enhance the electrical conduction and hence the electrochemical reaction activity of the active material without hindering the lithium ion transport through the electrode surface. Moreover, it can suppress the undesirable increasing growing of the solid electrolyte interphase film during the repeated charge/discharge cycling due to the surface side reactions between the active material and the electrolyte.