This paper reviews recent studies conducted on carbon nanotube/polymer composites. Carbon nanotubes are promising new materials for blending with polymers with potential to obtain low-weight nanocomposites of extraordinary mechanical, electrical, thermal and multifunctional properties. The size scale, aspect ratio and properties of nanotubes provide advantages in a variety of applications, including electrostatically dissipative materials; advanced materials with combined stiffness, strength and impact for aerospace or sporting goods; composite mirrors; automotive parts that require electrostatic painting and automotive components with enhanced mechanical properties. The various processing methods for producing these nanocomposites are discussed, in particular melt mixing, solution processing and in-situ polymerization. Some key results are summarized, relating to the mechanical, electrical, thermal, optical and surface properties. Finally, the challenges for the future are discussed in terms of processing, characterization, nanotube availability, nanotube tailoring, and the mechanisms governing the behavior of these remarkable nanoscale composites. Polym. Compos. 25:630-645, 2004.