We report the effect of adding NiO nanoparticles on the transport properties of the half-Heusler alloys Zr0.5Hf0.5Ni1-xPdxSn0.99Sb0.01 (x=0, and 0.2). The half-Heusler matrix materials are prepared by traditional powder metallurgy methods. The resulting bulk matrix is mixed with different volume fractions of nanometer-sized NiO particles, previously synthesized by solution-phase chemical methods. The resulting mixture is densified under uniaxial pressure to form a composite. The resulting material is found to contain both half-Heusler and full-Heusler phases. The corresponding compounds have higher thermal conductivity and electron mobility.