Multi-walled carbon nanotubes (MWCNTs) were oxidized by two different acid treatments and further functionalized with itaconic acid (IA). The functionalized MWCNTs were used to fabricate Poly(ethylene terephthalate) (PET) composites by melt mixing. The presence of functional groups on the surface of the treated MWCNTs was confirmed by infrared spectroscopy and thermogravimetric analysis. The MWCNTs oxidized with a concentrated mixture of HNO3 and H2SO4 exhibited more oxygen containing functional groups (OH, COOH) but also suffer larger structural degradation than those oxidized by a mild treatment based on diluted HNO3 followed by H2O2. PET composites were fabricated using the oxidized-only and oxidized followed by functionalization with IA MWCNTs. PET composites fabricated with MWCNT oxidized by mild conditions showed improved tensile strength and failure strain, while harsh MWCNT oxidation render them overly brittle.