CNTs/Fe/Al2O3 nanocomposites were prepared by thermal CVD and SPS methods. The dispersion of CNTs in the Fe/Al2O3 matrix were controlled by an attrition milling process. FESEM analysis revealed that the CNTs of 5 vol.% were homogeneously dispersed in the Fe/Al2O3. The effects of CNTs dispersion on the mechanical and electrical properties of the specimens were investigated. Fracture strength and electrical conductivity of 5 vol.% CNTs/Fe/Al2O3 specimen were measured at 641 MPa and 2.93 10-11 mS/m, whereas that of a 20 vol.% CNTs/Fe/Al2O3 specimen were 208 MPa and 8.46 10-7 mS/m, respectively. In comparison with an Al2O3 monolith, the specimen with 5 vol.% CNTs showed enhanced fracture strength and increased electrical conductivity.