Waterborne polyurethane (WBPU) was synthesized by a polyaddition reaction with toluene diisocyanate (TDI), polytetramethylene ether glycol (PTMEG), dimethylol propionic acid (DMPA), and triethylamine (TEA). Aqueous polyurethane dispersions with three different weight fractions, 30, 40, and 50 wt%, were prepared. All the dispersions made with these concentrations showed Newtonian viscosity behavior. Multiwalled carbon nanotubes (CNTs) were functionalized using a mixture of sulfuric and nitric acid at a ratio of 3:1 and added to these dispersions in two different loads of 0.1 and 0.5 wt%. Ultraviolet visible spectrometry (UV/Vis) spectroscopy proved the formation of stable suspensions following ultrasonic agitation. The rheology of these suspensions was characterized using dynamic and steady-state measurements. The higher amount of CNT in the suspension imparted non-Newtonian and complex viscoelastic behavior. This was attributed to a physical network formed due to the presence of the functionalized CNTs. The Cox-Merz rule was not observed for these suspensions.