Electrically conductive CNT reinforced polycarbonate matrix nanocomposites with high strain-to-failure were fabricated by inserting polyvinylalcohol as a surface modifier through a melt blending process. The addition of PVA by coating the CNT through a simple ball milling process before melt blending with a polycarbonate matrix resulted in an increased percolation limit as compared to that prepared using uncoated CNTs, while the electrical conductivity was maintained at a similar level of 2 x 10(-2) S/cm. However, tensile elongation was considerably improved by the addition of PVA and remained at 81% even though 5 wt% of the CNTs were added for electrical conductivity, while elongation dropped to 25% when the CNTs were not coated with PVA. The addition of PVA induces homogeneous dispersion of CNTs during the melt blending process and can enhance both electrical conductivity and mechanical durability.