This study examines the effects of heat and fire on the physical, mechanical and electrical properties of carbon fibre and those in carbon fibre reinforced composites (CFRCs). Carbon fibres were exposed to controlled heating (thermogravimetric analysis (TGA) and a tube furnace) in inert and air (oxygenated) environments and simulated fire (cone calorimetry at 35–75 kW m−2 and jet fire (propane burner) of 116 kW m−2) atmospheres. In inert atmospheres there was a minimal effect on the properties of carbon fibres, but in an oxygenated environment, significant oxidation began at temperatures ≥550 °C, resulting in a reduction in fibre diameter, which reduced further with increasing temperature and exposure duration. Tensile strength and electrical conductivity of carbon fibre decreased with reduction in fibre diameter. CFRCs exposed to 75 kW m−2 in a cone calorimeter and direct flame in a propane burner (116 kW m−2) showed varying degrees of oxidation in CFRC plies, with surface ply fibres experiencing more oxidation and consequent reductions in fibre diameter and tensile properties compared to fibres in underlying plies, where oxidation was limited due to restricted oxygen availability. Fibres exposed to the propane burner exhibited notable damage, including pitting and internal oxidation. Despite this, the overall electrical properties of residual carbon fibres did not significantly decrease, indicating that they still pose an electrical hazard if exposed during a high heat or fire event.