In this study, carbon nanotube polymer nanocomposites have been fabricated incorporating single walled carbon nantubes (SWNTs) or multiwalled carbon nanotubes (MWNTs) in a thermosetting polymer matrix, epoxy resin. Nanoindentation measurements showed that elastic modulus of epoxy polymer matrix has changed from 3.5 GPa to 4.0 GPa (~ 15 % increase) only for 0.005 wt% single walled carbon nanotubes loading. The hardness of the single walled carbon nanotube incorporated epoxy nanocomposites remained nearly unchanged for 0.005 wt % nanotube loading. Multiwalled carbon nanotube incorporated epoxy nanocomposites showed deterioration of both the hardness, from 0.2 GPa to 0.08 GPa (~factor 2.5), and elastic modulus, from 3.5 GPa to 2.1 GPa (~ factor 1.6), for 0.02 wt % nanotube loading. Homogeneity study using continuous stiffness measurement (CSM) mode of indentation techniques revealed the lack in homogeneity of the fabricated nancomposite may be responsible for deteriorating mechanical properties. High resolution scanning electronic microscopic (SEM) images taken from cross section of carbon nanotubes incorporated epoxy nanocomposites showed several poorly attached thin layers of nanocomposites staked on each other which may be another cause of property deterioration.