Abstract This study explores the impact of introducing vacancy in the transition metal layer of rationally designed Na 0.6 [Ni 0.3 Ru 0.3 Mn 0.4 ]O 2 (NRM) cathode material. The incorporation of Ru, Ni, and vacancy enhances the structural stability during extensive cycling, increases the operation voltage, and induces a capacity increase while also activating oxygen redox, respectively, in Na 0.7 [Ni 0.2 V Ni0.1 Ru 0.3 Mn 0.4 ]O 2 (V-NRM) compound. Various analytical techniques including transmission electron microscopy, X-ray absorption near edge spectroscopy, operando X-ray diffraction, and operando differential electrochemical mass spectrometry are employed to assess changes in the average oxidation states and structural distortions. The results demonstrate that V-NRM exhibits higher capacity than NRM and maintains a moderate capacity retention of 81% after 100 cycles. Furthermore, the formation of additional lone-pair electrons in the O 2 p orbital enables V-NRM to utilize more capacity from the oxygen redox validated by density functional calculation, leading to a widened dominance of the OP4 phase without releasing O 2 gas. These findings offer valuable insights for the design of advanced high-capacity cathode materials with improved performance and sustainability in sodium-ion batteries.