For recent applications, liquid crystal-carbon nanotube based nanocomposite systems have been proven to be highly attractive. In this paper, we give a thorough analysis of a nanocomposite system made of both functionalized and nonfunctionalized multiwalled carbon nanotubes that are disseminated in a 4'-octyl-4-cyano-biphenyl liquid crystal medium. Thermodynamic study reveals a decrease in the nanocomposites' transition temperatures. In contrast to nonfunctionalized multiwalled carbon nanotube dispersed systems, the enthalpy of functionalized multiwalled carbon nanotube dispersed systems has increased. In comparison to the pure sample, the dispersed nanocomposites have a smaller optical band gap. A rise in the longitudinal component of permittivity and, consequently, the dielectric anisotropy of the dispersed nanocomposites has been observed by dielectric studies. When compared to the pure sample, the conductivity of both dispersed nanocomposite materials has increased by two orders of magnitude. For the system with dispersed functionalized multiwalled carbon nanotubes, the threshold voltage, splay elastic constant, and rotational viscosity all decreased. For the dispersed nanocomposite of nonfunctionalized multiwalled carbon nanotubes, the value of the threshold voltage is somewhat decreased but the rotational viscosity and splay elastic constant both are enhanced. These findings show the applicability of the liquid crystal nanocomposites for display and electro-optical systems with appropriate tuning of the parameters.