A series of experiments was conducted using a lab-scale batch mode apparatus in order to find the technical feasibility of microwave plasma assisted carbon fiber manufacturing technology, where oxidized PAN precursor was carbonized by microwave plasma instead of conventional heating. The effects of microwave strength and microwave output power on the ultimate tensile strength and Young’s modulus were investigated. It was found that microwave output power had greater effects on the strength of manufactured carbon fiber than microwave strength. As the microwave output power was increased from 4-6 Wh/g to 10-12 Wh/g, the ultimate tensile strength increased from 1.24-2.09 to 3.1-3.51 GPa and Young’s modulus from 89.4-121 to 156-191 GPa. Further increase of the microwave output power did not increase the ultimate tensile strength and Young’s modulus. The Young’s modulus of the carbon fiber manufactured in this study was as low as 73.5-83.0% of that of the conventional commercial carbon fiber, but the ultimate tensile strength was similar to or greater than that of the conventional commercial carbon fiber.