yA fluorinated multiwalled carbon nanotube (FMWNT) was prepared by reaction of 3-perfluorooctylpropylamine with carboxylic acid groups on the oxidized carbon nanotube surface. The modification was confirmed by TGA, TEM, and solubility tests in a perfluorodecalin solvent. Nanocomposite fibers based on FMWNT and a fluoro-ethylene-propylene (FEP) copolymer were fabricated by melt blending and melt spinning. SEM examination indicated that the dispersion of FMWNT in FEP was significantly better than that of the as received multiwalled carbon nanotube (MWNT) in FEP. Both yield strength and modulus of the melt-spun FMWNT/FEP nanocomposite fiber increased with increasing FMWNT content, but the elongation-to-break ratio decreased. In-situ small-angle X-ray scattering (SAXS) and wide-angle X-ray diffraction (WAXD) techniques were used to follow the structural changes during tensile deformation of melt-spun fibers. In pure FEP fibers, perpendicularly arranged lamellar stacks (with respect to the fiber axis) became tilted at small strains, while destruction of lamellae took place at high strains (> 250%), resulting in the rapid decrease of crystallinity. Surprisingly, the tilting of lamellar stacks was not observed in FEP/FMWNT nanocomposite fibers during deformation. We hypothesize that the well-dispersed FMWNT particles form a fibrous network, which can carry a significant fraction of local stress, resulting in overall increases of yield strength and modulus. A possible mechanism to explain the effect of FMWNT on the lamellar structural change in FEP and corresponding mechanical behavior is presented.