In this paper, multi-walled carbon nanotubes are synthesized by arc-discharge and chemical vapor decomposition methods. Multi-walled carbon nanotubes are synthesized on thin film of nickel sputtered on silicon substrate by thermal chemical vapor deposition of acetylene at a temperature of 750°C. The flow of current in arc-discharge method varies in the range 50–200 A. Further arc-synthesized carbon nanotubes are characterized by X-ray diffraction (XRD), scanning electron microscopy (SEM), transmission electron microscopy (TEM), and the results are compared with nanotubes grown by chemical vapor deposition method. XRD result shows a characteristic peak (0 0 2) at 26.54° corresponding to the presence of carbon nanotubes. SEM and TEM results give morphology of as-synthesized multi-walled nanotubes. TEM results indicate synthesis of well-graphitized carbon nanotubes by arc-discharge method. Dispersion of arc-synthesized nanotubes in SDS solution under the effect of different sonication times is studied. Dispersion of nanotubes in SDS solution is analyzed using UV–vis–NIR spectroscopy and it shows an absorption peak at 260 nm. It was found that with the increase in sonication time, the absorption peak in UV–vis–NIR spectra will increase and optimum sonication time was 2 hours. Functionalization of synthesized carbon nanotubes by H₂SO₄ and HNO₃ acids has been studied and analysis of functionalized groups has been done using FT-IR spectroscopy and compared and the results are reported in this paper. FT-IR spectroscopy verifies the presence of carboxylic groups attached to carbon nanotubes. These functional groups may change properties of carbon nanotubes and may be used in vast applications of carbon nanotubes.