The current research on carbon nano beads (CNB) is focused on various applications such as high strength nanocomposites, electronic devices, lubricants, semiconductors, and high-performance batteries, etc. The commercial uses of CNB are yet juvenile for the market. Only limited results have been published so far on CNB reinforced polymers [1]. This study highlights the synthesis of uniform size, spherical CNB using chemical vapour deposition (CVD) method. The synthesized CNB are introduced into epoxy matrix by ultrasonic dual mode mixing route to produce CNB/epoxy nanocomposite. The CNB are characterized by X-ray diffraction, Energy dispersive X-ray analysis and field emission scanning electron microscope (FESEM). Morphology, thermal and mechanical properties of the CNB/epoxy nanocomposites is characterized by FESEM, Thermo-gravimetric analyzer and tensile and bending tests respectively. A noticeable improvement in thermal and mechanical properties of CNB reinforced epoxy matrix with low nanofiller content is observed. Several toughening mechanisms such as particle pull out, crack deflection, particle bridging, crack pinning, shear yielding or plastic deformation, and microcracking are identified. But, only the crack deflection, particle bridging and shear yielding or plastic deformations are recognized as the leading toughening mechanisms for CNB/epoxy nanocomposite. These results can be considered as symptomatic of a potential CNB espousal in new composites. (C) 2015 Elsevier B.V. All rights reserved.