Since their discovery, carbon nanotubes (CNTs) have been investigated for their incredible physical, electrical, and thermal properties. Harnessing these properties in a usable form has proven challenging. Adding CNTs to metals to form metal-matrix composites (MMCs) can potentially achieve significant increases to base metal properties; however, current composite properties are limited due to CNT aggregation and poor interfacial bonding between the metal and CNT. We have demonstrated a method to encapsulate individual, or small bundles of, CNTs in a metal-shell without the use of vacuum processing. This encapsulation process improves the dispersion of CNTs within a metal composite and increases the bonding between the CNT and metal matrix. Using this encapsulation process we have shown that a steel composite added Fe-encapsulated CNTs improves axial fatigue life by greater vs. plain steel.