Stress-relieving and electrically conductive single-walled carbon nanotubes (SWNTs) and conjugated polymer, poly[3-(potassium-4-butanoate)thiophene] (PPBT), wrapped silicon microparticles (Si MPs) have been developed as a composite active material to overcome technical challenges such as intrinsically low electrical conductivity, low initial Coulombic efficiency, and stress-induced fracture due to severe volume changes of Si-based anodes for lithium-ion batteries (LIBs). The PPBT/SWNT protective layer surrounding the surface of the microparticles physically limits volume changes and inhibits continuous solid electrolyte interphase (SEI) layer formation that leads to severe pulverization and capacity loss during cycling, thereby maintaining electrode integrity. PPBT/SWNT-coated Si MP anodes exhibited high initial Coulombic efficiency (85%) and stable capacity retention (0.027% decay per cycle) with a reversible capacity of 1894 mA h g-1 after 300 cycles at a current density of 2 A g-1, 3.3 times higher than pristine Si MP anodes. The stress relaxation and underlying mechanism associated with the incorporation of the PPBT/SWNT layer were interpreted by quasi-deterministic and quantitative stress analyses of SWNTs through in situ Raman spectroscopy. PPBT/SWNT@Si MP anodes can maintain reversible stress recovery and 45% less variation in tensile stress compared with SWNT@Si MP anodes during cycling. The results verify the benefits of stress relaxation via a protective capping layer and present an efficient strategy to achieve long cycle life for Si-based anodes for next-generation LIBs.