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Carbon nanotubes (CNTs) have been grown by decomposition of propane over a nanocamposite catalyst by chemical vapour deposition (CVD). The catalyst was prepared from an aluminum/iron oxide/graphite mixture milled in a high-energy ball-milling equipment. Scanning and transmission electron microscopies, Raman spectroscopy and X-ray diffraction measurements have been carried out in order to investigate the catalyst and synthesized CNTs. The results show that iron nanoparticles are produced in an alumina and ball-milled graphite matrix. This produced nanocomposite is used as a catalyst to synthesize CNTs via CVD successfully. The yield of CNTs formation was greatly influenced by the milling time and deposition temperature.