Carbon nanotube is seen to be an excellent reinforcement candidate to produce multifunctional composites with improved mechanical, thermal and electrical properties. Strong interfacial bonding and homogenous dispersion are necessary conditions to obtain effective load transfer for mechanical enhancement. This paper addresses the processing of polymer composites reinforced by functionalized single wall carbon nanotubes. FTIR, SEM/EDX and DMA analysis are presented. The results demonstrated that the chemical functionalization of nanotubes helps to improve both dispersion and interaction in polymer matrix. Mechanical property improvement for the epoxy polymer composites has been shown with a small amount of carbon nanotube addition.