Carbon fibres have attracted interest from both the scientific and engineering communities due to their outstanding physical properties. Here we report that recently synthesized ultrathin diamond nanothread not only possesses excellent torsional deformation capability, but also excellent interfacial load-transfer efficiency. Compared with (10,10) carbon nanotube bundles, the flattening of nanotubes is not observed in diamond nanothread bundles, which leads to a high-torsional elastic limit that is almost three times higher. Pull-out tests reveal that the diamond nanothread bundle has an interface transfer load of more than twice that of the carbon nanotube bundle, corresponding to an order of magnitude higher in terms of the interfacial shear strength. Such high load-transfer efficiency is attributed to the strong mechanical interlocking effect at the interface. These intriguing features suggest that diamond nanothread could be an excellent candidate for constructing next-generation carbon fibres.