Both fullerenes and single-walled carbon nanotubes (SWNTs) exhibit many advantageous properties. Despite the similarities between these two forms of carbon, there have been very few attempts to physically merge them. We have discovered a novel hybrid material that combines fullerenes and SWNTs into a single structure in which the fullerenes are covalently bonded to the outer surface of the SWNTs. These fullerene-functionalized SWNTs, which we have termed NanoBuds, were selectively synthesized in two different one-step continuous methods, during which fullerenes were formed on iron-catalyst particles together with SWNTs during CO disproportionation. The field-emission characteristics of NanoBuds suggest that they may possess advantageous properties compared with single-walled nanotubes or fullerenes alone, or in their non-bonded configurations.