Neutron sources and the consequent time-of-flight diffraction techniques provide the precise short-range structure.Recently mechanical alloying (MA) has been employed to synthesize various kinds of materials. The MA of graphite under Ar gas atmosphere transformed the hexagonal graphite into nano-structured graphite. In case of the mechanical alloying of the graphite under D2 gas atmosphere, deuterium was absorbed by the solid-gas reaction. The radial distri-bution function RDF (γ) derived by neutron diffraction experiments informed us the location of deuterium in the nano-structured graphite. The short-range structure of lithium-graphite intercalation compound observed by neutron dif-fraction indicated the formation of metastable LiC3.1 intercalation compound.