Properties of melt processed polyamide 66 (PA66)/multiwalled carbon nanotube composite were first characterized experimentally. The experimental results exhibited the formation of crystalline layer around the nanotubes and a considerable enhancement in mechanical properties by incorporation of multiwalled carbon nanotube up to 1 wt%. Mechanical properties were analyzed in terms of structural parameters using micromechanical models proposed in this study. It was suggested that the mechanical properties were greatly dominated by crystalline layer and nanotube length. It was also deduced that the melt mixing process caused a significant nanotube breakage restricting further enhancement of nanocomposite properties at higher nanotube contents. Surface modification of nanotube provided better polymer-nanotube interaction; however, it increased the mechanical properties marginally.