A powder-in-sheath rolling (PSR) process utilizing a copper alloy tube was applied to a fabrication of a multi-walled carbon nanotube (CNT) reinforced aluminum matrix composite. A copper tube with an outer diameter of 30 mm and a wall thickness of 2 mm was used as a sheath material. A mixture of pure aluminum powders and CNTs with the volume contents of 1, 3, 5 vol% was filled in the tube by tap filling and then processed to 93.3% height reduction by a rolling mill. The relative density of the CNT/Al composite fabricated by the PSR decreased slightly with increasing of CNTs content, but showed high value more than 98%. The average hardness of the 5%CNT/Al composite increased more than 3 times, compared to that of unreinforced pure Al powder compaction. The hardness of the CNT/Al composites was some higher than that of the composites fabricated by PSR using SUS304 tube. Therefore, it is concluded that the type of tube affects largely on the mechanical properties of the CNT/Al composites in the PSR process.