In the search for high capacity anodes for SIBs, we have investigated electrochemical properties of a nanocomposite based on SnF2 and acetylene black. The nanocomposite electrode delivers a reversible capacity of 563 mAh g-1 which is higher than the specific capacity of 323 mAh g-1 of the micron-sized bare SnF2 electrode. The sodium insertion/extraction process of the high-performing nanocomposite is revealed by in-situ XRD, ex-situ XAS and TEM techniques. The reaction mechanism revealed using in-situ XRD show the existence of a solid solution of two or more compositions during cycling. Ex-situ XAS reveals the electronic and atomic configurations of SnF2 at different potential states during dis/charging. The XAS results reveal that the valence change of Sn follows the conversion (SnF2 + 2Na → Sn + 2NaF) and the alloying (Sn + XNa → SnNaX) reaction upon sodium insertion into a composite.