Multifunctional smart composites (MSCs) are materials that combine the good electrical and thermal conductivity, high tensile and shear strength, good impact toughness, and high stiffness properties of metals; the light weight and corrosion resistance properties of composites; and the sensing or actuation properties of smart materials. The basic concept for MSCs was first conceived by Daniel Inman and others about 25 years ago. Current laminated carbon and glass fiber polymeric composite materials have high tensile strength and are light in weight, but they still lack good electrical and thermal conductivity, and they are sensitive to delamination. Carbon nanotube yarn and sheets are lightweight, electrically and thermally conductive materials that can be integrated into laminated composite materials to form MSCs. This paper describes the manufacturing of high quality carbon nanotube yarn and sheet used to form MSCs, and integrating the nanotube yarn and sheet into composites at low volume fractions. Various up and coming technical applications of MSCs are discussed including composite toughening for impact and delamination resistance; structural health monitoring; and structural power conduction. The global carbon nanotube overall market size is estimated to grow from $2 Billion in 2015 to $5 Billion by 2020 at a CAGR of 20%. Nanotube yarn and sheet products are predicted to be used in aircraft, wind machines, automobiles, electric machines, textiles, acoustic attenuators, light absorption, electrical wire, sporting equipment, tires, athletic apparel, thermoelectric devices, biomedical devices, lightweight transformers, and electromagnets. In the future, due to the high maximum current density of nanotube conductors, nanotube electromagnetic devices may also become competitive with traditional smart materials in terms of power density.