The influence of nanodiamonds (NDs) on the thermal and ablative performance of carbon-fiber-reinforced-epoxy matrix compositeswas explored. The ablative response of the composites with 0.2 wt% and 0.4 wt% NDs was studied through pre-and post-burning morphologies of the composite surfaces by evaluation of temperature profiles, weight loss, and erosion rate. Composites containing 0.2 wt% NDs displayed a 10.5% rise in erosion resistance, whereas composites containing 0.4 wt% NDs exhibited a 12.6% enhancement in erosion resistance compared to neat carbon fiber-epoxy composites. A similar trend was witnessed in the thermal conductivity of composites. Incorporation of composites with 0.2 wt% and 0.4 wt% NDs brought about an increase of 37 wt% and 52 wt%, respectively. The current study is valuable for the employment of NDs in carbon fiber composite applications where improved erosion resistance is necessary.