The purpose of this study is to investigate the effect of carbon-milled-fiber addition on the static and fatigue strength of CFRP. The fine milled recycled PAN type carbon fiber in which fiber diameter and length are 7 and 150μm, respectively, were used in this study. The feasibility of controlling the orientation of added CMF into CFRP matrix resin by applying the magnetic field was studied. CFRP was fabricated from plain woven carbon cloth and epoxy resin by hand layup technique. After layup, CFRP laminate was put into pair of neodymium magnets for applying the magnetic field. The static strength and fatigue strength of CFRP laminate was measured by tensile test and tension-tension fatigue test, respectively. The Mode I fracture toughness of CFRP laminate was also measured by using DCB test. Test results showed that there are no significant effect of CMF addition on static strength of CFRP was observed. On the other hand, the fatigue strength was improved by adding 1 and 3wt% of CMF into CFRP. However, when 5wt% of CMF was added into CFRP, the fatigue strength of CFRP was decreased. Moreover, when orientation of added CMF was controlled by adding magnetic field, the fatigue strength and Mode I fracture toughness were improved compared to that of un-controlled specimen. The observation of fractured surface of DCB specimen showed that the CMF was aligned to out-plane direction by adding magnetic field.