We have one-pot fabricated Si-based nanocomposite electrodes containing Ag nano-dots for thin-film Li rechargeable batteries by a co-sputtering method. The structural and electrochemical properties of the Si/Ag nanocomposite electrodes are investigated via transmission electron microscopy (TEM), field emission scanning electron microscopy (FESEM), X-ray diffraction (XRD), and cycler. The TEM and XRD results show that crystalline Ag nano-dots (approximately 5-9 in size) are well-dispersed within an amorpohous Si matrix. It is shown that the Si/Ag nanocomposite electrode shows much better structural stability than the Si only sample. It is also shown that the Si/Ag nanocomposite electrode shows superior capacity retention compared to the Si only electrode. The results indicate that the presence of the Ag nano-dots is important minimizing the formation of cracks in the electrode, so leading to the better life-time for thin-film Li rechargeable batteries.