In recent days, a lot of attention was being drawn towards the polymer nanocomposites for use in electrical applications due to encouraging results obtained for their dielectric properties. Polymer nanocomposites were commonly defined as a combination of polymer matrix and additives that have at least one dimension in the nanometer range scale. Carbon nanotubes were of a special interest as the possible organic component in such a composite coating. The carbon atoms were arranged in a hexagonal network and then rolled up to form a seamless cylinder which measures several nanometers across, but can be thousands of nanometers long. There were many different types, but the two main categories are single-walled nanotubes (SWNTs) and multi-walled nanotubes (MWNTs), which are made from multiple layers of graphite. Carbon nanotubes were an example of a nanostructure varying in size from 1-100 nanometers (the scale of atoms and molecules). Nano composites were one of the fastest growing fields in nanotechnology. Extensive literature survey has been done on the nanocomposites, synthesis and preparation of nano filler. The following objectives were set based on the literature survey and understanding the technology. Complete study of Organic varnish and CNT Chemical properties Electrical properties Thermal properties Mechanical properties Synthesis and characterization of carbon nanotubes Preparation of polymer nanocomposites Study of characteristics of the nanocomposite insulation Dimensioning an insulation system requires exact knowledge of the type, magnitude and duration of the electric stress while simultaneously considering the ambient conditions. But, on the other hand, properties of the insulating materials in question must also be known, so that in addition to the proper material, the optimum, e.g. the most economical design of the insulation system must be chosen.