In this work preparation and characteristic of modified nanocarbons is described. These materials were obtained using nanocrystalline iron as a catalyst and ethylene as a carbon source at 700°C. The influence of argon or hydrogen addition to reaction mixture was investigated. After ethylene decomposition samples were hydrogenated at 500°C. As a results iron carbide (Fe3C) in the carbon matrix in the form of multi walled carbon nanotubes was obtained. After a treatment under hydrogen atmosphere iron carbide decomposed to iron and carbon and small iron particles agglomerated into larger ones.