Carbon nano-tube (CNT) reinforced metal matrix nano-composites have attracted a great deal of attention in recent years due to the outstanding physical and mechanical properties of CNTs. However, utilizing CNT as reinforcement for alloy matrixes has not been studies systematically and is still a challenging issue. In the present study, Cu₈₀Fe₂₀/10CNT nanocomposite was synthesized by mechanical alloying in two different procedures. The effects of CNT addition on microstructural and physical properties of nano-composite, Phase composition, morphology, magnetic and electrical properties of the samples were investigated by X-ray diffraction, field emission scanning electron microscopy, vibrating sample magnetometer, and four point probe techniques, respectively. The results showed that addition of CNT suppressed the solid solubility extension of Fe in Cu matrix. Dispersion and implantation of CNTs in the metal matrix improved, particles size was smaller and their shape was more granular when CNTs were added at the start of milling. Saturation magnetization and coercivity of composite samples increased with addition of CNT probably due to the presence of non-dissolved Fe in nano-composites and inhomogeneity of microstructure, respectively. Electrical resistivity of nano-composites was higher than that of matrix alloy. The increment was more when milling time of CNTs and metal powder was shorter.