In the present work, the functionalisation of oxidised SWCNTs and MWCNTs is studied. The functionalised fillers are characterised by Raman spectroscopy and TGA. The functionalised fillers are dispersed in a PBT-PTMO thermoplastic elastomer matrix via in situ polymerisation. The functionalisation causes a fine filler dispersion right at beginning of nanocomposite manufacturing. The fillers act as nucleating agents for crystallisation and evidences for a grafting from PBT at the surface of the functionalised nanotubes are found. An outstanding reinforcement effect by the functionalised CNTs is confirmed by tensile tests.