The microstructure and electrical conductivity of CNTs dispersed nanocomposites depending on the powder processing and CNTs content were demonstrated. The composite powders with homogeneous dispersion of CNTs could be synthesized by a catalytic route for direct formation of CNTs on nano-sized Fe dispersed powders. The sintered nanocomposite using the composite powder with directly synthesized CNTs showed homogeneous microstructure and enhanced elelctrical conductivity. The influence of powder processing on the properties of sintered nanocomposites was discussed by the observed microstructural features.