Nanodiamond (ND), an emerging new carbon material, was exploited to reinforce nylon 6,6 (PA66) polymer composites. Surface modified nanodiamonds with acyl chloride end groups were employed to chemically graft into PA66, enhancing the interfacial adhesion and thus the mechanical properties. The ND grafted PA66 (PA66-g-ND) reinforced PA66 composite prepared by in situ reactive extrusion exhibited increased tensile strength and modulus. The tensile strength and modulus of PA66/3 wt.% PA66-g-ND composites were enhanced by 11.6 and 20.8%, respectively when compared to those of the bare PA66 matrix. Even the PA66/pristine ND composites exhibited enhanced mechanical properties. The PA66-g-ND and the homogeneously dispersed PA66-g-ND in PA66 matrix were examined using X-ray photoelectron spectroscopy, thermogravimetric analysis, scanning electron microscopy and transmission electron microscopy techniques. The mechanical properties and thermal conductivities of the nanodiamond incorporated PA66 composites were also explored. The enhanced mechanical properties and thermal conductivities of the PA66-g-ND/PA66 composites make them potential materials for new applications as functional engineered thermoplastics.