α-Ni(OH)2 has attracted great attention as a cathode material for alkaline secondary batteries (ASBs) because of its high theoretical capacity and small volume change during charge/discharge cycles. However, poor cycling stability and low electronic conductivity of α-Ni(OH)2 severely hinder its development and practical applications in ASBs. In this work, α-Ni(OH)2/graphene nanosheet composite was successfully fabricated by a facile homogeneous precipitation method. The nanocomposite is composed of α-Ni(OH)2 nanoflowers decorated homogeneously on the surfaces of graphene nanosheets. When evaluated as cathode material for ASBs, this α-Ni(OH)2/graphene nanocomposite exhibits much enhanced high-rate capability and cycling stability compared to the pure α-Ni(OH)2 due to the improved electrochemical reaction kinetic, enhanced electronic conductivity, and hierarchical nanostructure. For example, the α-Ni(OH)2/graphene nanocomposite presents a rate retention of 74.8% as the current density increasing from 250 to 5000 mA g−1, much higher than that (49.0%) of pure α-Ni(OH)2; moreover, at a current density of 2000 mA g−1, the α-Ni(OH)2/graphene nanocomposite still maintains a reversible capacity of 177 mA h g−1 after 200 cycles, which is four times higher than that (41 mA h g−1) of the pure α-Ni(OH)2. The attractive electrochemical performances and facile synthesis route made the prepared α-Ni(OH)2/graphene nanocomposite become a promising electrode material for ASBs.