We have successfully fabricated poly( ethylene oxide) (PEO) nanofibers containing embedded multi-wall carbon nanotubes (MWCNTs). An initial dispersion of the MWCNTs in distilled water was achieved using sodium dodecyl sulfate. Subsequently, the dispersion was decanted into a PEO solution, which enabled separation of the MWCNTs and their individual incorporation into the PEO nanofibers on subsequent electrospinning. Initially, the carbon nanotube (CNT) rods were randomly oriented, but owing to the sink-like flow in the electrospinning wedge, they became gradually oriented along the streaming direction, in order that oriented CNTs were obtained on entering the electrospun jet. Individual MWCNTs became embedded in the nanofibers, and were mostly aligned along the fiber axis. Evidence of load transfer to the nanotubes in the composite nanofiber was observed from the field-emission scanning electron microscopy, transmission electron microscopy and conductivity data.