Novel composite nanotubes, consisting of NbS2-sheathed carbon nanotubes (CNTs), have been generated successfully employing carbon nanotube template-promoted growth. Detailed experimental procedures, and the associated intermediate oxide phases during NbS2 conversion, have been evaluated using high-resolution transmission electron microscopy, coupled with EDX analysis. Our results show that CNTs act as templates and that the uniform well-crystallized NbS2 nanotubes are produced from unevenly wrapped NbO2. A multipoint nuclei site growth mechanism has been proposed to account for nanotube formation.