Carbon fiber reinforced composites are used in a wide range of applications in aerospace, mechanical, and civil structures. Due to the nature of material, most damage in composites, such as delaminations, are always barely visible to the naked eye, which makes it difficult to detect and repair. The investigation of biological systems has inspired the development and characterization of self-healing composites. This paper presents the development of a new type of self-healing material in order to impede damage progression and conduct in-situ damage repair in composite structures. Carbon nanotubes, which are highly conductive materials, are mixed with shape memory polymer to develop self-healing capability. The developed polymeric material is applied to carbon fiber reinforced composites to automatically heal the delamination between different layers. The carbon fiber reinforced composite laminates are manufactured using high pressure molding techniques. Tensile loading is applied to double cantilever beam specimens using an MTS hydraulic test frame. A direct current power source is used to generate heat within the damaged area. The application of thermal energy leads to re-crosslinking in shape memory polymers. Experimental results showed that the developed composite materials are capable of healing the matrix cracks and delaminations in the bonded areas of the test specimens. The developed self-healing material has the potential to be used as a novel structural material in mechanical, civil, aerospace applications.