C59N magnetic fullerenes were formed inside single-wall carbon nanotubes by vacuum annealing functionalized C59N molecules encapsulated inside the tubes. A hindered, anisotropic rotation of C59N was deduced from the temperature dependence of the electron spin resonance spectra near room temperature. Shortening of spin-lattice relaxation time, T1, of C59N indicates a reversible charge transfer toward the host nanotubes above ∼ 350 K. Bound C59N-C60 heterodimers are formed at lower temperatures when C60 is co-encapsulated with the functionalized C59N. In the 10-300 K range, T1 of the heterodimer shows a relaxation dominated by the conduction electrons on the nanotubes.Single-wall carbon nanotubes (SWCNTs) [1, 2] exhibit a variety of unusual physical phenomena related to their one-dimensional and strongly correlated electronic properties. These include excitonic effects [3,4], superconductivity [5], the Tomonaga-Luttinger liquid state [6], and the Peierls transition [7]. Magnetic resonance is a powerful method to study strong correlations in low dimensional systems. However, for SWCNTs both nuclear magnetic resonance (NMR) and electron spin resonance (ESR) are severely limited by NMR active 13 C nuclei and ESR active electron spins in residual magnetic catalytic particles and other carbon phases. Synthesis of 13 C isotope engineered SWCNTs solved the problem for NMR [8,9]. To enable ESR spectroscopy of SWCNTs, a local probe, specifically attached to SWCNTs, is required. The N@C 60 [10] and C 59 N [11] magnetic fullerenes are ideal candidates for such studies. In fullerene doped SWCNTs, fullerenes occupy preferentially the interior of the tubes and form "peapods" (C 60 @SWCNT) [12]. Fullerenes adhesing to the outside can be removed [13] in contrast to e.g. filling with iron [14]. ESR on encapsulated magnetic fullerenes could yield information on the electronic state of the tubes and it could also enable to study the fullerene rotational dynamics in a confined environment. In addition, magnetic fullerene peapods could exploit the combination of the SWCNT strength and the magnetic moment of molecules in magnetic scanning probe tips and they could enable a bottom-up design for magnetic storage devices or for building elements of quantum computers [15].Typical spin concentrations in (N@C 60 :C 60 )@SWCNT are low, ∼1 spin/tube, and the N spins are insensitive to SWCNT properties [16]. The C 59 N monomer radical is a better local probe candidate as the unpaired electron is on the cage. C 59 N can be chemically prepared but it forms spinless dimers (C 59 N) 2 or monomer adducts [11].The magnetic C 59 N monomer radical can be stabilized as C 59 N:C 60 , a dilute solid solution of C 59 N in C 60 [17].Here, we report on the first ESR study of SWCNT properties and peapod rotational dynamics using a paramagnetic local probe: C 59 N monomer radicals encapsulated inside SWCNTs. SWCNTs were first filled with chemically inert C 59 N derivatives. A heat treatment in vacuum removes the side-group and the monomer radical is left behin...