We show that covalent functionalization of carbon nanotubes (CNTs) via 1,3-dipolar cycloaddition is a powerful method for enhancing the ability to process CNTs and facilitating the preparation of hybrid composites, which is achieved solely by mixing. CNTs were functionalized with phenol groups, providing stable dispersions in a range of polar solvents, including water. Additionally, the functionalized CNTs could easily be combined with polymers and layered aluminosilicate clay minerals to give homogeneous, coherent, transparent CNT thin films and gels.