In this study, the electrode material (nickel hydroxide powder) has been synthesized by a co-precipitation method using sodium hydroxide and nickel sulphate as precipitator and nickel source, respectively. The obtained nickel hydroxide powder has been subsequently embedded with biosynthesized MgO and ZnO nanoparticles as nanohybrids, which have been investigated as a novel hybrid electrode material for power-storage applications. The powder x-ray diffraction pattern of nickel hydroxide (Ni(OH)2)-based nanohybrid materials reveals a typical β-phase. Fourier transform infrared spectroscopy confirms the embedded structures of nanohybrids and thermal stability by thermogravimetry and differential thermal) analysis. The electrochemical properties of these materials have been studied using cyclic voltammetry and electrochemical impedance spectroscopy (EIS). The specific capacitance values are found to be 439, 1076, and 622 F g−1 for bare β-Ni(OH)2, and for β-Ni(OH)2 embedded with ZnO and MgO nanohybrids, respectively, at a scan rate of 10 mVs−1. The enhanced capacitance of nanohybrids is also evident from EIS measurements. Galvanostatic charge–discharge tests for these designed nanohybrids show excellent capacitance performance in battery and supercapacitor applications. These innovative results could be considered for the expansion of novel resources to scale for power-storage applications and may contribute to the development of this niche area at large.