The alignment of multiwalled carbon nanotubes (MWNTs) has been accomplished through deposition of uniform layers of magnetite/maghemite nanoparticles (diameter = 6-10 nm) and use of an external magnetic field. The coating of CNTs with magnetic nanoparticles was performed by combining the polymer wrapping and layer-by-layer (LbL) assembly techniques. The particle-coated MWNTs are superparamagnetic and can be aligned at room temperature on any substrate by deposition from an aqueous solution in an external field B = 0.2 T. The volume magnetization of the particle coated MWNTs is found to be enhanced by 17% compared to the pure particles in a powder indicating that either the adsorption process onto the CNTs changes the particle magnetization, or the MWNTs carry an intrinsic magnetization due to remaining Ni used as a catalyst for the growth process.