Carbon nanotubes (CNTs) have been successfully coated with a covalently bonded polymer brush of negatively charged poly(3-sulfopropylamino methacrylate) (PSPM) by in situ polymerization employing atomic transfer radical polymerization (ATRP) from initiating silanes attached to the CNTs before the polymerization. The CNT-bonded brush forms a polymer layer or shell-like structure around the CNTs and provides colloidal stabilization for the CNTs in aqueous media. In situ syntheses of nanocrystalline CdS and magnetic iron oxide in the polymer brushes lead to the formation of hybrid nanocomposites consisting of nanoparticle-containing PSPM-coated CNTs that remain readily dispersible and stable in aqueous media. The hybrid nanostructures are synthesized by ion exchange with the cations of the sulfonate groups of the PSPM followed by precipitation and were followed by stepwise zeta potential measurements and TEM. Such structures could have applications in the design of more complex structures and devices. The general synthetic scheme can be extended to include other nanoparticles as brush cargo to broaden the utility or functionality of the CNTs. TEM data shows nanocrystalline CdS in the range of 5-8 nm embedded in the PSPM brush and nanocrystalline iron oxide with a size between 2 and 4 nm, with the former consistent with UV-vis spectroscopy and fluorescence measurements.