The surface carbon nanotubes (CNTs) were modified to generate functional reactors by using the sonicication method to distribute CNTs evenly among epoxy resin, which was prepared into nano-prepreg with carbon fibers. Additionally, based on various proportions of modified and unmodified CNTs, the mechanical properties and conductivities of the composite, as well as, the characteristics of material subjected to various temperature conditions were investigated. Experimental results indicate that increasing CNT content enhances the mechanical strength and electrical properties. At various temperatures, the mechanical strength drops with increase in temperature because different expansion coefficients differ between fiber and epoxy resin. Finally, the failure surface of nanocomposite was examined using scanning electron microscopy (SEM). Finally we provide a discussion of the failure mechanism of the material. © 2009 Elsevier Ltd.