Carbon nanotubes (CNT)-cerium oxide (CeO2) nanocomposites were fabricated successfully by one-pot microwave hydrothermal growth of regular CeO2 nanoparticles with a size of 8 nm on hydroxyl-functionalized multi-walled CNTs. These nanocomposite photocatalysts demonstrated an acid orange (AO7) photocatalytic degradation efficiency of above 90% under solar-simulated light irradiation for 3 h, which was much higher than that of the pure CeO2 nanoparticles. The enhanced photocatalytic activity was observed to mainly originate from the ˙O2- and hole traps, while the hydroxyl radical ˙OH played a secondary role.