The present study focuses on the preparation of poly(ethylene oxide) (PEO) nanocomposites based on the synthetic Laponite clay. The clay was added both in its pure form as well as organically modified with low molar mass poly(ethylene glycol) (PEG) components in order to enhance the compatibility between Laponite and PEO. Several PEG's with different end groups were used. Almost all of them were found to intercalate in the clay intergallery spacing. An order of intercalation efficiency could be established. The modified clays displayed a good thermal stability at the nanocomposite processing temperature. The nanocomposites based on the pure Laponite clay as well as the modified clays display an intercalated structure with a modest intergallery spacing. The ion-dipole modification with the PEG's was ineffective in improving the compatibility between PEO and the Laponite silicate layers. Their respective mechanical properties were found to be increased a little, which can be attributed to the low effective aspect ratio of the silicate platelets present in the nanocomposites. This is caused by the low initial aspect ratio of Laponite (w/t= 25) and the limited basal spacing increase. The addition of clay does not result in nucleation of the PEO crystallisation. In contrast, the crystallisation was inhibited, resulting in decreased heat of fusions, especially for the pure Laponite nanocomposites. The nanocomposites based on the modified Laponites display a good thermal stability. (C) 2004 Elsevier Ltd. All rights reserved.