In this work we have coated multiwalled carbon nanotubes (MWCNTs) with SiC by solgel process and these modified MWCNTs are dispersed in PPO/LCP blend. The dispersion of these modified MWCNTs are analyzed by FESEM and found to be improved compared to pure MWCNTs. Thermal and mechanical properties of the modified MWCNTs added nanocomposites are higher than that of the pure MWCNTs added nanocomposites. PPO/LCP forms an incompatible blend while addition of unmodified and modified MWCNTs improves the compatibility between the blend partners.