In this study, poly(ε-caprolactone) (PCL)/multiwalled carbon nanotube (MWCNT) composites with different contents of MWCNTs were successfully prepared by solution compounding, a method which could make them good competitors for commodity materials such as general purpose plastics, while allowing them to keep their complete biodegradability. For the homogeneous dispersion of the MWCNTs in the polymer matrix, oxygen-containing groups were introduced on their surface. The mechanical properties of the PCL/MWCNT composites were effectively increased due to the incorporation of the MWCNTs. The composites were characterized using scanning electron microscopy, in order to obtain information on the dispersion of the MWCNTs in the polymeric matrix. In the case of the composites containing 2.0 wt% of MWCNTs in their matrix, the strength and modulus of the composites were increased by 18.4% and 178.4%, respectively. In addition, the dispersion of the MWCNTs in the PCL matrix resulted in a substantial decrease in the electrical resistivity of the composites as the MWCNT loading was increased from 0 to 2.0 wt%.