In the present study polypropylene containing 0, 2 and 4wt% of carbon nanotubes were prepared by melt compounding using twin screw extruder. The blends were then compression moulded into sheets and biaxially stretched at draw ratios of 0, 3.1, 4.1, 5.1, and 5.7. The effects of stretching ratios on the tensile and rheological properties of the blends were investigated. Tensile properties of unfilled polypropylene were found to increase with the increase in draw ratio, whilst increase in draw ratio to above 5.1 had a negative impact on the tensile properties of the nanocomposite. The reinforcement effect of carbon nanotubes at draw ratio of 4.1 was found to be up to 2.5 times greater than in unstretched nanocomposite. This is most likely due to the enhancement of nanotube dispersion within the polymer or it is due to the orientation of polymer chains by stretching process. Rheological analysis suggested that the biaxial stretching process enhanced dispersion of carbon nanotubes with the polymer.