Carbon nanotubes (CNTs) are expected to be ideal reinforcements of composite materials used in aircraft and sports industries due to their high modulus and low density. In the present paper, severe plastic deformation by high pressure torsion (HPT) of powders at elevated temperature (473 K) was employed to achieve both powder consolidation and grain refinement of aluminum-matrix nanocomposites reinforced by 5 vol% CNTs. Before the HPT, the powders were ball milled using planetary ball mill in order to achieve molecular level mixing. Aluminum was treated by the same process for a reference. The HPT processed disk were composed of considerably equilibrium grain boundaries with high misorientation angles. The CNT-reinforced ultrafine grained microstructural features resulted in high strength and good ductility.