Carbon nanotubes (CNTs) have generated great interest within the many areas of nanotechnology due to their superior and outstanding physical properties. However effective dispersion in many solvents has imposed limitations upon the use of CNTs in a number of novel applications. Functionalization presents a solution for CNTs to be more soluble which make them integrate well into any organic, inorganic or biological systems. CNTs can be easily functionalized using cyclodextrin (CD) treatment. The CD modification of carbon nanotubes is both simple and effective. It requires no prolonged heating, filtration and washing which can severely damage the small diameter nanotubes. The formation of surface functional groups and changes of nanotubes structures of functionalized carbon nanotubes (f-CNTs) were monitored by Fourier transform infrared spectroscopy (FTIR), Thermo gravimetric analysis (TGA) and field emission scanning electron microscopy (FESEM), respectively. From the TGA results, the amount of weight loss of the f-CNTs in varying ratios indicated the amount of CD that was functionalized. It was also noted that the FTIR spectra showed the presence of functional groups associated with CD in the f-CNTs. As a result, the cyclodextrin groups were found to be possibly adsorbed at the surface of the nanotubes walls. The f-CNTs showed substantial solubility in N-methyl-2-pyrrolidone (NMP) which helps in a better distribution of the CNTs in the mixed matrix membrane (MMM) prepared. Hence, the influence of the f-CNTs in the polymer matrix will give rise to enhanced physical properties of the MMM suitable for applications in gas separations.