The aim of present review article is to present a comprehensive and current overview of scientific advancement in liquid crystal and carbon nanotube suspension. Particular attention has been paid to the recent developments and fundamental understanding of carbon nanotube dispersion in nematic liquid crystals. The dispersion and interaction of carbon nanotube in liquid crystal matrices and more elaborately the effect of dispersion on the properties of liquid crystalline materials has been extensively discussed. Recent progress has shown that even a very minute concentration of carbon nanotube in liquid crystals can have a reflective impact on the electrical and optical properties of liquid crystals. Liquid crystals provide a distinctive environment for controlling the alignment of carbon nanotubes whereas carbon nanotubes are important for the enhancement and fine-tuning of liquid crystalline properties. Potential applications of liquid crystal and carbon nanotube suspension are briefly discussed. Conclusion and future perspectives of this rapidly emerging field is provided at the end. (C) 2016 Elsevier Ltd. All rights reserved.