The P2/O3 layered oxide system is thought to benefit from a synergistic enhancement, resulting from the presence of both phases, which makes it a promising cathode material for Na-ion battery applications. Here, biphasic P2/O3-Na2/3Li0.18Mn0.8Fe0.2O2 is investigated via a combination of neutron and X-ray scattering techniques. Neutron diffraction data indicates that the O3 alkali metal site is fully occupied by Li. Real time operando X-ray diffraction data shows the structural evolution of the composite electrode - at the charged state there is no evidence of O2, OP4 or Z phases. The results presented herein provide new insight into site preference of Li in biphasic materials and highlights the value of utilizing multiple phases to achieve high performance layered cathode materials for sodium battery applications.