The hierarchically structured carbon nanofibers (CNFs)/carbon felt composites, in which CNFs were directly grown on the surface of microfibers in carbon felt, forming a CNF layer on a micrometer range that completely covers the microfiber surfaces, were tested as a novel support material for cobalt nanoparticles in the highly exothermic Fischer-Tropsch (F-T) synthesis. A compact, fixed-bed reactor, made of disks of such composite materials, offered the advantages of improved heat and mass transfer, relatively low pressure drop, and safe handling of immobilized CNFs. An efficient 3-D thermal conductive network in the composite provided a relatively uniform temperature profile, whereas the open structure of the CNF layer afforded an almost 100 % effectiveness of Co nanoparticles in the F-T synthesis in the fixed bed. The greatly improved mass and heat transport makes the compact reactor attractive for applications in the conversion of biomass, coal, and natural gas to liquids.