Mg1.8La0.2Ni hydrogen storage alloy was ball-milled with Ni powder, leading to the formation of a nanocrystalline and amorphous microstructure with particle sizes less than 50 nm in diameter. Each sample was examined by transmission electron microscopy (TEM), energy-dispersive spectroscopy (EDS), and X-ray diffraction (XRD). This structure was beneficial for the reduction of electrochemical impedance, as well as significant improvement of its discharge capacity, cycle life, and rate capability for electrochemical hydrogen storage in an alkaline solution. When the molar ratio (x) of Ni over Mg1.8La0.2Ni was equal to 2, the dehydriding capacity reached 2.55 wt % from electrochemical pressure-temperature isotherms (P-C-T). It was in good agreement with its initial discharge capacity, 716 mA center dot h/[g of (Mg1.8La0.2Ni)], observed from the electrochemical charge and discharge process. After 50 cycles, its discharge capacity still reached 381 mA center dot h/[g of (Mg1.8La0.2Ni)]. Further results showed that this composite had a promising high rate capability. At the current density of 1200 mA/g its discharge capacity reached 48% of its initial capacity.