Magnetic nanoparticles in the hollow region of carbon nanotubes have attraction due to their changing physical electrical and magnetic properties. Nickel zinc ferrite plays an important role in many applications due to its superior magnetic properties. Ni0.8Zn0.2Fe 2O4 single crystals were encapsulated in multiwall carbon nanotubes (MWCNTs). The magnetic nano crystals were prepared using a sol-gel self combustion method at the sintering temperature of 750 °C and were characterized by XRD, FESEM, TEM and VSM. Initial permeability, Q-factor and relative loss factor were measured by impedance vector network analyzer. XRD patterns were used for the phase identification. FESEM images show morphology and dimensions of the grains of Ni0.8Zn0.2Fe 2O4 single crystals and Ni0.8Zn 0.2Fe2O4 single crystals in MWCNTs. TEM images were used to investigate single crystal and encapsulation of Ni 0.8Zn0.2Fe2O4 single crystals in the MWCNTs. VSM results confirmed super paramagnetic behaviour of encapsulated Ni0.8Zn0.2Fe2O4 single crystals. It was also attributed that encapsulated Ni0.8Zn0.2Fe 2O4 single crystals in MWCNTs showed a higher initial permeability (51.608), Q-factor (67.069), and low loss factor (0.0002) as compared to Ni0.8Zn0.2Fe2O4 single crystals. The new encapsulated Ni0.8Zn0.2Fe 2O4 single crystals in the MWCNTs may have potential applications in electronic and medical industries. Copyright © 2012 American Scientific Publishers. All rights reserved.