A new sol-gel process for the preparation of ultrafine nickel hydroxide electrode materials was developed. The composite electrodes consisting of carbon nanotubes and Ni(OH)2 were developed by mixing the hydroxide and carbon nanotubes together in different mass ratios. In order to enhance energy density, a combined type pseudocapacitor/electric double layer capacitor was considered and its electrochemical properties were characterized by cyclic voltammetry and dc charge/discharge test. The combined capacitor shows excellent capacitor behavior with an operating voltage up to 1.6 V in KOH aqueous electrolyte. Stable charge/discharge behaviors were observed with much higher specific capacitance values of 24 F/g compared with that of EDLC (12F/g) by introducing 60% Ni(OH)2 in the anode material. By using the modified anode of a Ni(OH)2/carbon nanotubes composite electrode, the specific capacitance of the cell was less sensitive to discharge current density compared with that of the capacitor employing pure nickel hydroxide as anode. The combined capacitor in this study exhibits high energy density and stable power characteristics.