Surface functionalization of single-walled carbon nanotube was carried out by introducing ylides groups containing anchored phenol structures. The functionalized nanotube is characterized using elemental analysis, Fourier transform infrared spectroscopy, field emission scanning electron microscopy, thermogravimetric analysis, Raman spectroscopy and zeta potential measurements. Elemental and FT-IR analysis reveal the successful functionalization of azomethine ylides. Raman spectroscopic studies corroborates that the surface functionalization does not affect the basic crystal domain size of the nanotubes. Functionalized carbon nanotubes exhibit higher zeta potential values showing its higher dispersant ability in water and acetone solvent in comparison to pure carbon nanotube. (c) 2006 Elsevier B.V. All rights reserved.