Magnetic properties of multi-walled carbon nanotubes modified with iron (MWCNT+Fe) are studied in detail in the temperature range 4.2–300 K. Carbon encapsulated Fe nanoparticles were obtained using chemical vapor deposition method. The low-temperature SQUID magnetization measurements are supplemented by structural investigations with thermogravimetric (TG) analysis, transmission electron microscopy (TEM), x-ray diffraction spectroscopy (XRD), and scanning electron microscopy (SEM). The magnetic susceptibility of MWCNT+Fe was also studied above room temperature to provide a complete picture of magnetic phase transitions.