The incorporation of 0.1-0.2 mu m diameter carbon filaments (0.6 vol.%) between continuous carbon fiber (7 mu m diameter, 56.5 vol.%) layers in an epoxy-matrix composite during composite fabrication was found under flexure to greatly increase transverse and longitudinal tan delta values, increase the storage modulus in the transverse direction, slightly decrease the storage modulus in the longitudinal direction, and increase both longitudinal and transverse loss moduli to values as high as 2 GPa.