This work aims to explore the effect of organo-modified montmorillonite nanoclay (O-MMT) on the mechanical, thermo-mechanical, and thermal properties of carbon fiber-reinforced phenolic composites (CFRP). CFRP at variable O-MMT contents (from 0 to 2.5 wt%) were prepared. The addition of 1.5 wt% O-MMT was found to give the heat resistant polymer composite optimum properties. Compared to the CFRP, the CFRP with 1.5 wt% O-MMT provided a higher tensile strength of 64 MPa (+20%), higher impact strength of 49 kJ/m2 (+51%), but a little lower bending strength of 162 MPa (-1%). The composite showed a 64% higher storage modulus at 30 °C of 6.4 GPa. It also could reserve its high modulus up to 145 °C. Moreover, it had a higher heat deflection temperature of 152 °C (+1%) and a higher thermal degradation temperature of 630 °C. This composite could maintain its mechanical properties at high temperature and was a good candidate for heat resistant material.