A simple three-step strategy to functionalize multiwalled carbon nanotubes using 1,2-distearoyl-sn-glycero-3-phosphoethanolamine phospholipids has been described. The resulting phospholipid-modified multiwalled carbon nanotubes were analyzed by TEM, AFM, NMR, IR, UV-vis and TGA techniques. The experimental results show that the use of amine-terminated phospholipids not only improves the dispersity of multiwalled carbon nanotubes in both aqueous and organic solvents greatly, but also results in the significant enhancement of biocompatibility. These findings will serve as a future biological platform for new devices ranging from biosensors to nano-detectors. (c) 2007 Elsevier Ltd. All rights reserved.