Conductive poly(tetrafluoroethylene) (PTFE) composites containing surface-modified multiwalled carbon nanotubes (MWCNTs) were prepared by a simple heterocoagulation process in water. Two different types of MWCNT were used and compared: carboxylated MWCNT and cetyltrimethyl ammonium bromide (CTAB)-stabilized MWCNT. Aqueous PTFE dispersion was mixed with the well-dispersed MWCNT dispersions and they were heterocoagulated with the aid of a flocculant, polyaluminum chloride at an elevated temperature. After particle growth and successive stabilization step, particulated PTFE/MWCNT composites were prepared in the size range of 10–100 µm. The MWCNT-containing PTFE composites have improved thermal stability and electrical conductivity. Importantly, the percolation threshold for the electrical conductivity was achieved at a low concentration of MWCNT using this heterocoagulation process.