Carbon nanotube (CNT) and alumina dispersions were prepared separately in dimethylformamide (DMF) and ethanol by ultrasonication. The colloidal stability of the dispersions was monitored and a particle size analysis was performed to evaluate the size range of the agglomerates after different times. DMF was found to be a much more effective dispersant than ethanol for making stable, homogeneous CNT and composite dispersions. Alumina-CNT (4.65 vol%) nanocomposites were sintered in a spark plasma sintering (SPS) furnace. DMF dispersions produced homogeneously distributed and agglomerate-free CNT-alumina nanocomposites with higher electrical conductivity as compared to nanocomposites prepared using ethanol.