In batteries for underwater applications, cathode materials in nano size play a key role in achieving high-power capability due to the increased reaction rate and short diffusion lengths required for underwater vehicles and weapons. Lithium Iron Phosphate (LiFePO4) is a promising cathode material for Li-ion batteries. Nano sized particles of the above cathode material were successfully synthesized from precursors without impurity phases through Microwave synthesis method. The required microwave power and exposure time were optimized. The material was characterized for its structure and particle size. In this paper, procedure of microwave synthesis, the discharge capacities at different Crates and the cyclability of this nano cathode material are discussed.