This study presents a peer-to-peer (P2P) trading strategy for power management of nanogrids with renewable energy sources (RESs), taking battery lifetime of energy storage system (ESS) into consideration. Nanogrid requires more analytical power management as individual control of each electric appliance should be carried out, considering its rated power. With the increasing penetration of distributed energy resources, P2P trading can be applied to nanogrids equipped with RESs and ESSs. For the power management of a nanogrid, multi-objective optimization is used to minimize grid power consumption, electricity cost, and delay of using electric appliances in appliance scheduling. In this paper, a battery aging model or degradation cost model is considered in the multi-objective optimization to prolong the ESS lifetime. The electricity from RESs and ESSs used for P2P trading is determined to increase the profitability of nanogrids. Depending on the amount of electricity allocated to P2P trading, a nanogrid can be a seller or buyer in P2P trading. P2P trading is carried out based on the cooperative game theory to maximize the welfare of both sellers and buyers. As compared to power management involving P2P trading without considering ESS lifetime, the proposed one in consideration of ESS lifetime decreases the electricity cost of nanogrid by 2.86% on average, and the degradation cost of ESS by 32.75% on average.