In this work, multiwall carbon nanotubes (MWCNT) were functionalized with phenol and characterized by using Fourier transform infrared spectroscopy (FTIR). Isotactic polypropylene (iPP)/MWCNT composites of both the unfunctionalized and functionalized MWCNT were prepared by melt blending in a miniextruder at different loadings of nanotubes (i.e., 0.1, 0.25, 1.0, and 5.0 wt%). The tensile properties of the composites were found to increase with increase in nanotube loading with a maximum in Young's modulus being achieved at 1.0 wt% loading of phenol functionalized MWCNT. The differential scanning calorimetry (DSC) studies reveal the nucleating effect of MWCNT on the crystallization of iPP. Percentage crystallinity was found to increase on phenol functionalization of MWCNT. Results of X-ray diffraction studies of the composites are in conformity with that of DSC studies. Dynamic mechanical studies reveal that the functionalized MWCNT causes many fold increase in the storage modulus, and the effect is pronounced in the case of functionalized MWCNT. POLYM. ENG. SCI. 2012. (c) 2011 Society of Plastics Engineers