In this research, the influence of nanoclay on urea-glyoxalated lignin-formaldehyde (GLUF) resin properties has been investigated. To prepare the GLUF resin, glyoxalated soda baggase lignin (15 wt%) was added as an alternative for the second urea during the UF resin synthesis. The prepared GLUF resin was mixed with the 0.5%, 1%, and 1.5% nanoclay by mechanically stirring for 5 min at room temperature. The physicochemical properties of the prepared resins were measured according to standard methods. Then the resins were used in particle-board production and the physical and mechanical properties of the manufactured panels were determined. Finally, from the results obtained, the best prepared resin was selected and its properties were analyzed by differential scanning calorimetry (DSC), Fourier transform infrared spectrometry (FTIR), and X-ray diffractometry (XRD). Generally the results indicated that the addition of sodium-montmorillonite (NaMMT) up to 1.5% appears to improve the performance of GLUF resins in particleboards. The results also showed that nanoclays improved mechanical strength (modulus of elasticity (MOE), Modulus of Rupture (MOR), and internal bond (IB) strength) of the panels bonded with GLUF resins. The panels containing GLUF resin and nanoclay yielded lower formaldehyde emission as well as water absorption content than those made from the neat GLUF resins. XRD characterization indicated that NaMMT only intercalated when mixed with GLUF resin. Based on DSC results, the addition of NaMMT could accelerate the curing of GLUF resins. The enthalpy of the cure reaction (Delta H) of GLUF resin containing NaMMT was increased compared with neat GLUF resin. Also the results of FTIR analysis indicated that addition of NaMMT change the GLUF resins structures.