A novel approach to chemically functionalize multiwalled carbon nanotubes (MWCNTs) for making advanced polymeric nanocomposites with liquid crystalline polymers (LCPs) is presented. In this approach, two types of chemical moieties (i.e., carboxylic and hydroxyl benzoic acid groups) of selectively introduced onto the sidewalls of the MWCNTs. Fourier transform I R and Raman spectroscopy are used to examine the interaction between the functionalized MWCNTs and the LCP. The strong interaction between the functionalized MWCNTs and the LCP greatly improved the dispersion of MWCNTs in the polymer matrix as well as the interfacial adhesion. The dispersion of the MWCNTs in the LCP matrix is observed by optical microscopy and field-emission scanning electron microscopy. As a result, the addition of 1 wt% MWCNTs in the LCP resulted in the significant improvement (41 and 55%) in the tensile strength and modulus of the LCP.