We report significant improvement in mechanical properties of SC-15 epoxy when reinforced with decorated nanotubes and cured in a modest magnetic field. The chemical synthesis and field curing process is a low cost and relatively easy technique to impose strong magnetic anisotropy into the system without the need of a superconducting magnet. SWCNT(COOH)s were decorated with Fe3O4 nanoparticles through a sonochemical oxidation process and then dispersed into SC-15 epoxy at 0.5 wt% loading. The admixture was cured for 6 hours in a magnetic field of 10 kOe followed by an additional 24 hours of post curing at room temperature. Control samples were prepared in a similar manner but without the application of the magnetic field. Mechanical tests performed on field-cured samples indicated that tensile strength and modulus increased by 62% and 40%. Most importantly, modulus of toughness, fracture strain, and modulus of resilience improved by 346%, 165%% and 170%, respectively. Such enhancement in mechanical properties was attributed to changes in polymer morphology, partial alignment of nanotubes in the field direction, and sliding at the polymer-nanotube interface. Detailed characterization of the system with XRD, TEM, DMA, and Magnetometry are described in the paper.