Carbon nanofibers (CNFs) are ozone-treated for different time durations (45 and 90 min). Changes in surface characteristics of CNFs due to ozone treatment were studied with BET surface area analyzer and Raman spectroscopy. Raman spectroscopic studies showed that ozone treatment is imparting enhanced degree of disorder for CNFs. Changes in surface functional groups of CNFs due to ozone treatment were estimated using elemental analysis and thermogravimetric analysis. The influence of ozone-treated CNFs on the mechanical properties of laminated (2D) carbon fiber-reinforced epoxy matrix (CFRP) composites has been studied. Results indicate that ozone-treated CNFs can improve the mechanical properties of CFRPs significantly as compared to untreated CNFs due to enhanced interface compatibility between the ozone-treated CNFs to the matrix. Ozone treatment of CNFs proposed in this study has the potential to overcome the limitations of the conventional methods of generating functional groups. © 2015 Taylor and Francis.