Deposition of Mg(OH)2 on to the bare Ni electrode surface was done by dipping bare Ni electrode in magnesium nitrate and KOH solutions. The Ni electrode was first immersed in the magnesium nitrate solutions of different concentrations and dried in the open atmosphere and then immersed in the 10% KOH solution for five minutes and dried in the open atmosphere. The effect of Mg(OH)2 deposit on the Ni electrode surface was electrochemically studied by electrochemical impedance spectroscopy, cyclic voltammetry and chronoamperometry. A “H” type cell was used to construct the Ni-Cd cell and to study the effect of Mg(OH)2 deposit on Ni electrode surface. The experimental results revealed that addition of the smaller quantities (~5%) of Mg(OH)2 does not affect the electrochemical characteristics of nickel electrode and addition of the larger quantities (10 and 15%) affects the function of nickel electrodes considerably.