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A novel approach employing C2H2 instead of CO as carburization agent has been applied to fabricate nanophase WC‐Co composite alloys being strengthened by carbon nanotubes and nanorods, which were formed in‐situ during C2H2 carburization process. The sintered composite alloys show exceptionally high microhardness. Carbon nanotubes are supposed to play roles on strengthening the matrix and prohibiting growth of WC grains, thus greatly improving the mechanical properties of the matrix.