Free radicals generated by decomposition of benzoyl peroxide in the presence of alkyl iodides have been used to derivatize small-diameter single-wall carbon nanotubes (HiPco tubes). The degree of functionalization, estimated by thermal gravimetric analysis, is as high as 1 in approximately 5 carbons in the nanotube framework. The derivatized nanotubes exhibits remarkably improved solubility in organic solvents. The attached groups can be removed by heating in an atmosphere of argon. Derivatization was also accomplished by treating SWNTs with various sulfoxides employing Fenton's reagent. [reaction: see text]