Using a naphthalene-derived mesophase pitch as a starting material, highly oriented ribbon-shaped carbon fibers with a smooth and flat surface were prepared by melt-spinning, oxidative stabilization, carbonization, and graphitization. The preferred orientation, morphology, and microstructure, as well as physical properties, of the ribbon-shaped carbon fibers were characterized. The results show that, the ribbon-shaped fibers possessed uniform shrinkage upon heat treatment, thereby avoiding shrinkage cracking commonly observed in round-shaped fibers. As heat treatment progressed, the ribbon-shaped graphite fibers displayed larger crystallite sizes and higher orientation of graphene layers along the main surface of the ribbon-shaped fiber in comparison with corresponding round-shaped fibers. The stability of the ribbon-shaped graphite fibers towards thermal oxidation was significantly higher than that of K-1100 graphite fibers. The longitudinal thermal conductivity of the ribbon fibers increased, and electrical resistivity decreased, with increasing the heat treatment temperatures. The longitudinal electrical resistivity and the calculated thermal conductivity of the ribbon-shaped fibers graphitized at 3000 °C are about 1.1 μΩ m and above 1100 W/m K at room temperature, respectively. The tensile strength and Young’s modulus of these fibers approach 2.53 and 842 GPa, respectively.