This review paper covers the methods of CNT preparation and the important aspect of CNT dispersion in polymers. Recent developments on the Carbon Nanotube materials (CNT) have gained a great deal of attention with respect to their new applications including photoelectronic devises. However, due to the inherent chemical structure and high aspect-ratio, the CNT dispersion into other materials still remains a great challenge. To improve the CNT dispersion and compatibility with polymers is an important research subject. This paper deals with the dispersion problems in two accounts: (1) Literature reviews on the CNT preparation, structure and applications: It emphasizes on the nanocomposite applications, and the CNT surface modification and dispersion. (2) The progress in our laboratory on the CNT surface modifications: (A) Polymer modification: By following the literature method of H2SO4/HNO3 oxidation, the CNT-COOH was prepared and converted into amides by the consequential reaction with Jeffamine(superscript ®) Amines via three amidation routes, direct thermal amidation, acylation-mediated amidation, and dicyclohexylcarbodiimide DCC-coupling. Their dispersion properties were characterized to demonstrate the distinct nature of organophilic properties. (B) Nanosilicate Platelet (NSP) assisted dispersion: The use of nano silicate platelets, developed in our laboratories, was found to be effective for dispersing CNT into a water suspension. The intensive noncovalent bonding interaction between the CNT walls and platelet-shaped mica was evaluated by Atomic Force Microscopy. The newly developed method is unique and useful for water-borne dispersion.