A thermoplastic polyolefin (TPO)/organoclay nanocomposite has been successfully prepared by using maleic anhydride modified polypropylene as a compatibilizer. The nanocomposite was characterized by IR spectra, X-ray diffraction and Transmission Electron Microscope. The nanocomposite exhibited remarkable improvement of tensile and storage modulus over its pristine counterpart. Enhancement of storage modulus (in melted state) and decrease in terminal slope of the nanocomposite (over its pristine equivalent in the frequency sweep experiment) confirms the fact that a strong interaction exists between clay platelet and polymer molecules in the melted state. For both the nanocomposite and its pristine counterpart, strong shear thinning behavior was observed in the melted state (as examined by frequency sweep experiment). (C) 2004 Elsevier Ltd. All rights reserved.