In recent years, carbon nanotubes (CNTs) reinforced aluminum matrix composites (AMCs) have attracted increasing attention. The quality of dispersion, however, is a crucial factor which determines the homogeneity and final mechanical properties of these composites. This work studied the mechanical mixing methods, viz. high energy and low energy ball millings, and compared them to a novel polyester binder-assisted (PBA) mixing method. Experimental results showed that the high energy and low energy ball-milled CNTs disintegrated and there were residual stresses, unlike the PBA-CNTs. The CNT dispersion conditions by these three methods were discussed. The Al-CNTs mixture was subsequently consolidated by powder metallurgy (PM) technique. Small addition of arcs (0.5 wt.%) evidently improved the tensile strength and hardness of the composite by comparing with the pure matrix. Mechanical property enhancements of the Al-0.5CNT composites from PBA and high energy ball milling were superior to that mixed by low energy ball milling. This showed good dispersion effect in PBA and high energy ball milling technique. (C) 2010 Elsevier B.V. All rights reserved.