To understand the environmental impacts of carbon nanotubes (CNTs), the toxicity study was carried out with water-soluble multi-walled carbon nanotubes (MWCNTs) using zebrafish (Danio rerio) as a model system. Zebrafish embryos were treated with different concentrations of MWCNTs. Teratogenic effects were evaluated through changes in embryonic development after 24 hours post-fertilization (hpf), 48 hpf and 72 hpf. No observable effect concentration (NOEC) was at 40 microg/mL. Lowest effect concentration (LOEC) of MWCNTs which caused significant phenotypic defects in zebrafish embryo was 60 microg/mL. At concentration above 60 microg/mL, slimy mucus like coating was observed around the embryo. At high concentrations, MWCNTs was found to be involved in the apoptosis, delayed hatching and formation of abnormal spinal chords. Thus, the toxicity of multi-walled carbon nanotubes is concentration dependent.