A developed In₂O₃-coated LiFePO₄ (In₂O₃@LFP) cathode was successfully fabricated by the sol–gel technique. The structure of the fabricated cathode was scrutinized using Raman spectroscopy, XRD, SEM, and TEM techniques. The formation of the LiFePO₄ (LFP) phase with good crystallinity was affirmed by Raman spectroscopy and XRD results. Further, SEM and TEM studies revealed that the fabricated cathode crystallizes with a spherical-like shape. The synthesized cathode exhibits a remarkably improved electrochemical performance under the In₂O₃ coating layer. The In₂O₃@LFP cathode provides high discharge and charge capacities, around 135 and 125 mA h g⁻¹. Furthermore, the coulombic efficiency of the In₂O₃@LFP cathode was considerably promoted from 84% to 99.7%, demonstrating a high electrochemical stability during the succeeding cycles. After 50 cycles, a high-capacity retention rate was achieved. Cyclic Voltammetry (CV) results show the highest redox currents and the best reversibility of the In₂O₃@LFP cathode. These remarkable electrochemical characteristics of the In₂O₃@LFP electrode encourage the development of prospective cathode electrode materials.