Carbon fiber has been used to reinforce both aliphatic and aromatic polyamides. Aliphatic polyamide is known as nylon and aromatic polyamide is often referred to as aramid. Among aliphatic polyamides, polyamide 6, polyamide 6,6, polyamide 11, polyamide 12, and polyamide 1010 have been used as matrices for carbon fiber. Factors affecting the properties of polyamide/carbon fiber composites are: fiber amount, fiber length, fiber orientation, matrix viscosity, matrix-fiber interactions, matrix-fiber adhesion, and conditions encountered during manufacturing processes. This article presents a state-of-the-art review on polyamide/carbon fiber composites. Polyamide/carbon fiber composites are lightweight and exhibit high strength, modulus, fatigue resistance, wear resistance, corrosion resistance, gear, electrical conductivity, thermal conductivity, chemical inertness, and thermal stability. Incorporation of oxidized or modified carbon fiber and nanoparticle modified carbon fiber into polyamide matrices have been found to further enhance their physical properties. Applications of polyamide/carbon fiber composites in aerospace, automobile, construction, and other industries have been stated in this review. To fully exploit potential of polyamide/carbon fiber composites, concentrated future attempts are needed in this field.