Recently, we have shown that the graphene-VO2(B) nanotube hybrid is a promising lithium ion battery cathode material (Nethravathi et al. Carbon, 2012, 50, 4839-4846). Though the observed capacity of this material was quite satisfactory, the rate capability was not. To improve the rate capability we wanted to prepare a graphene-VO2(B) hybrid in which the VO2(B) would be built on 2D nanosheets that would enable better electrode-electrolyte contact. Such a material, a N-doped graphene-VO2(B) nanosheet-built 3D flower hybrid, is fabricated by a single-step hydrothermal reaction within a mixture of ammonium vanadate and colloidal dispersion of graphite oxide. The 3D VO2(B) flowers which are uniformly distributed on N-doped graphene are composed of ultrathin 2D nanosheets. When used in lithium ion batteries, this material exhibits a large capacity, high rate capability, and excellent cycling stability. The enhanced performance results from its unique features: excellent electronic conductivity associated with the N-doped graphene, short transportation length for lithium ions related to ultrathin nanosheets, and improved charge transfer due to the anchoring of the VO2(B) flowers to N-doped graphene.