Magnetic carbon nanotubes (CNTs)/alumina (Al 2 O 3 ) nanocomposites were synthesized by the direct growth of CNTs on alumina by chemical vapor deposition (CVD) process. X-ray diffraction studies show that the crystalline structure of alumina nanoparticles remains preserved during the CVD process. Electron microscopy studies reveal the uniform distribution of CNTs within the alumina matrix. CNTs of average diameter 20 nm are spread around alumina particles of size 120 nm. The proportion of CNTs in alumina composites is determined to be approximately 10% from the thermogravimetric analysis. CNT-reinforced alumina nanocomposites demonstrate a significant improvement of the magnetic properties as compared with pristine alumina powder. The diamagnetic property of alumina nanopowder is transformed into a strongly pronounced ferromagnetic response upon the incorporation of CNTs. The saturation magnetization increased by ~ 2500%, and a pronounced coercivity of 68 Oe was observed in the nanocomposites. It is suggested that the encapsulation of cobalt inside the CNTs constrains the magnetic moments to result in higher saturation magnetization. Hence, the CNTs/Al 2 O 3 system synthesized in this work can be employed to engineer novel ceramic composites with enhanced magnetic properties.