Carbon nanotubes (CNTs) were grown radially on the surface of carbon fiber/fabric by catalytic chemical vapor deposition through the decomposition of acetylene gas. Nickel was used as a catalyst. The CNTs were synthesized over a range of temperature from 650°C to 800CC. Scanning electron microscopy and transmission electron microscopy studies reveal the presence of CNTs. The density of CNTs on the carbon fiber is high. Thermal analysis study shows that the CNT coated carbon fiber is more stable in air than in oxygen. Considerable improvement in the remnant and saturation magnetization has been found through a vibrating sample magnetometer study. Current versus voltage measurements show a decrease of ~47% in onset voltage after the growth of CNTs on the surface of carbon fiber. Measurement of Brunauer Emmett and Teller surface area shows a threefold increase in the surface area of the carbon fibers after the growth of CNTs on their surface. A single-fiber pull out test indicates that the CNT coated carbon fiber improves the interfacial load transfer with respect to the as-received fiber. Improvement in storage modulus of a CNT coated carbon fiber composite in a polyester matrix is supported by dynamic mechanical analysis.