Well‐aligned carbon multiwalled nanotubes (MWNTs) have been synthesized continuously by pyrolysis of xylene–ferrocene mixtures. To study the MWNT growth mechanism, two‐step processes and various chemical vapor deposition (CVD) parameters have been employed. Transmission electron microscopy observations support a tip‐root growth model of MWNTs by floating catalytic CVD. Hydrocarbon analyzer is used to measure the total carbon balance within the CVD reactor, while mass spectra analyses monitor the concentrations of hydrocarbon species, which helps to understand the catalyst deactivation and pyrolysis chemistry of xylene over catalyst Fe(C) nanoparticles. MWNTs can be treated to attach required functional groups on nanotube walls and/or caps for specific applications by various methods including acid oxidation, reduction, addition of radicals, and cycloadditions. Carbon nanotubes (CNTs) have shown promising applications in advanced CNT–polymer composites. To realize CNT potentials to enhance the properties of matrices, several important issues such as dispersion, orientation, interfacial effects, and processing parameters have been addressed. The dependence of the CNT–polymer composite properties on CNT diameter, length, and interfacial effects has been used to develop models to predict and optimize variables for maximum composite performance. CNT–polymer composites have been developed for enhanced mechanical, electrical, and thermal properties, which have wide applications for the next generation of truly multifunctional materials as well as lighter weights and increased manufacturability over current materials.