Here, both piezoelectric and nonpiezoelectric nanostructures are used within fiber-reinforced composites to improve the damping capabilities of the host material. This work investigates and isolates the role of both piezoelectricity and the mechanical redistribution of strain on the damping properties of fiber-reinforced composites through the integration of a nanowire interphase between the fiber and matrix. Prior works have successfully studied and reported the effectiveness of modifying the surface of the reinforcing fibers in a composite material using nanowires and other nanostructured interfaces to increase mechanical damping, however, have yet to fully investigate the mechanism dictating the observed behavior. This study analyzes the effects of nonpiezoelectric nanowire interfaces in comparison to piezoelectric nanowire interfaces of the same microscale morphology. The damping properties of carbon fiber-reinforced composites containing both sets of nanowires are investigated via dynamic mechanical analysis over a range of temperatures as well as modal analysis at the first resonant frequency. The results conclusively indicate that a combination of both mechanical and piezoelectric effects contributes to the significant increase in damping properties of fiber-reinforced composites and quantifies the individual contributions.