Solid oxide fuel cells (SOFCs) are one of the promising power sources with high efficiency, clean exhausted and high fuel flexibility. Extensive efforts in research and development of SOFCs are currently being devoted to reduce their operating temperature to intermediate range of 600–800°C. The miniaturized SOFC system realized by high power density at the intermediate temperature (IT) range are receiving much attention because of their potential applications in mobile and portable uses. The design of electrode microstructure is crucial for high performance IT-SOFCs, since the performance is governed by the electrochemical reaction rates at the electrodes. Although the porous composite electrodes consist of oxide ion conductive electrolyte materials and electron (hole) conductive electro-catalysts have been studied intensively due to its better performance than monolithic electrode material, careful control of microstructure, as well as bulk and interfacial chemistry of the composite are highly required at lower temperature operation. We have been developed a colloidal processing based growth of nanocomposite particles for precise control of the microstructure and chemistry of the composite electrodes. This approach consists of two-steps, growth of oxide ion conductive electrolyte nanocrystals such as yttria-stabilized zirconia (YSZ) and gadolinium-doped ceria (GDC), and conjugation of the precursor of electro-catalysts such as NiO and lanthanum strontium cobalt ferrite (LSCF) with the electrolyte nanocrystals through heterogeneous nucleation induced by the surface of colloidal nanocrystals in the aqueous solution, followed by heat treatment for crystallization of the electro-catalysts. The nanocomposite particles are able to install into the conventional ceramic processing, and nanocomposite electrodes with excellent performance was obtained. In the present study, we will demonstrate some example of the microstructure and performance of the nanocomposite electrodes derived from this approach.