Poly (ethylene oxide), PEO, which was used for a wide variety of applications is a flexible, crystalline, thermoplastic, water-soluble and non-ionic polymer. The most of studies on surfactant-modified activated carbon (SM-PAC) have been generally focused on the removal of contaminants. This study aims the preparation of PEO/(SM-PAC) composites, using solution-intercalation method. Firstly activated carbon was modified with cationic surfactant, Cetyltrimethylammonium Bromide (CTAB). Then PEO/(SM-PAC) composites were prepared using solution-intercalation method, with two different (SM-PAC) contents (1.0 and 2.0 wt.%). The characterization of the composites was made by X-ray diffraction (XRD), Fourier Infrared Spectroscopy (FT-IR), thermal analysis and tensile tests. The XRD patterns revealed that 2θ positions of the broad peaks belonging to the composites significantly shift to left compared with those of virgin PEO. The SEM images of the surfactant-modified powdered activated carbon (SM-PAC)/PEO composites prepared with the two different SM-PAC contents show that there is an intensive interaction between the CTA + ions of modified activated carbon surface and the polymer chains. From the tensile tests, it was found that the unmodified powdered activated carbon dispersed into the polymer matrix made the ductile polymer more brittle. However, the tensile and yield strengths of the composite, prepared with modified powdered activated carbon, have decreased, and the strain percent value has significantly increased.