Ferromagnetic (FM) La-2/3(Ca0.6Ba0.4)(1/3)MnO3 and antiferromagnetic (AFM) NiO nanoparticles were synthesized using sol-gel method, respectively. La-2/3(Ca0.6Ba0.4)(1/3)MnO3 (1 mol)/ x NiO (x= 0, 0.05 and 0.15mol) composites with the coated NiO were prepared. The experimental results indicate that, both phases of LCBMO and NiO coexist clearly in the composites and the sizes of the NiO nanoparticles in the intergranular region between the LCBMO particles are very small; the interface of NiO influences evidently the value of MR and it is found that the tunneling MR for x=0.05 is the largest in three samples. The magnetoresistance behavior has been explained by two-level model of tunneling magnetoresistance and percolation model well.