A new type of carbon nanotube (CNT) (diameter of <100 nm) coated by conducting polypyrrole (PPY) was synthesized by in situ polymerization on CNTs. The structure of the resulting complex nanotubes (CNT-PPY) was characterized by elemental analysis, X-ray photoelectron spectroscopy, Raman spectra, and X-ray diffraction. These indicated no significant chemical interaction between PPY and the CNT. The electrical, magnetic, and thermal properties of the complex nanotubes were measured and showed the physical properties of the CNTs were modified by conducting PPY.