ABSTRACTIn this paper, we report interfacial crystallization in olefin block copolymer (OBC) with low crystallinity incorporated by multi‐walled carbon nanotubes (MWCNTs). A hybrid shish‐kebab (HSK) superstructure in nanocomposites is observed that MWCNTs act as central shish and OBC crystals grow perpendicular to the nanotubes axis. The mechanical properties of nanocomposites are significantly improved with incorporation of MWCNTs. The most ideal reinforcing and toughening effect is both observed in nanocomposites with MWCNTs content of 1 wt % that can increase tensile strength by 122% as well as elongation at break by 36%. Efficient load transfer are confirmed with in‐situ Raman spectra that G’ band of MWCNTs in OBC matrix exhibit a downshifting trend and symmetric broadening of line shape which reveals additional macroscale strain from axial extension of MWCNTs in nanocomposites, thus suggesting a certain load is carried by HSK superstructure. The structural evolution of OBC and nanocomposites are investigated by in‐situ wide‐angle X‐Ray Diffraction (WAXD). The Herman's orientation factor of nanocomposites with 2 wt % MWCNTs incorporation is lower than that of neat matrix at mall and intermediate strains, indicating a heterogeneous stress distribution and low compliance of HSK superstructure, which is consistent with in‐situ Raman results. Moreover, the nanocomposites presents significantly enhanced thermal stability. The onset decomposition temperature of nanocomposites with 3 wt % MWCNTs can be 60.2°C higher than that of neat OBC. © 2015 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2015, 132, 42368.