The carbon nanotube (CNT) represents one of the most unique inventions in the field of nanotechnology. CNTs have been studied closely over the last two decades by many researchers around the world due to their great potential in different fields. CNTs are rolled graphene with SP2 hybridization. The important aspects of CNTs are their light weight, small size with a high aspect ratio, good tensile strength, and good conducting characteristics, which make them useful as fillers in different materials such as polymers, metallic surfaces and ceramics. CNTs also have potential applications in the field of nanotechnology, nanomedicine, transistors, actuators, sensors, membranes, and capacitors. There are various techniques which can be used for the synthesis of CNTs. These include the arc-discharge method, chemical vaporize deposition (CVD), the laser ablation method, and the sol gel method. CNTs can be single-walled, double-walled and multi-walled. CNTs have unique mechanical, electrical and optical properties, all of which have been extensively studied. The present review is focused on the synthesis, functionalization, properties and applications of CNTs. The toxic effect of CNTs is also presented in a summarized form.