The present study is concerned with the preparation and characterisation of PEO/clay nanocomposites via melt-extrusion. Two different matrix molar masses of PEO were investigated as well as various types of the Cloisite clay range. PEO/Cloisite Na+ nanocomposites give rise to intercalated structures displaying only a moderate improvement of the mechanical properties at higher clay concentrations, regardless of the matrix molar mass. The chemical nature of the organic modifier was proven to be detrimental for the final nanocomposite structure and resulting mechanical properties. PEO nanocomposites based on the Cloisite 30B clay, incorporating a polar modifier, give rise to exfoliated structures. They display a strongly increased storage modulus, regardless of the matrix molar mass. The structural organisation of the nanocomposites based on Cloisite 20A, containing an apolar modifier, is very dependent on the matrix molar mass. An exfoliated structure can only be achieved upon melt mixing with a high molar mass PEO. In general, the mechanical properties of the nanocomposites based on the high molar mass PEO matrix are slightly superior. The thermal properties are also distinctly influenced by the addition of clay, although the actual structural organisation of the nanocomposite is proven to be less important. The melt temperature, as well as the crystallinity, decreases upon the addition of clay, especially for the low molar mass PEO matrix. The decomposition temperature shows a slight increase upon the addition of clay, especially for the Cloisite 30B nanocomposites. (C) 2004 Elsevier Ltd. All rights reserved.