The method of two-step melt blending was used to prepare polycarbonate/polypropylene/attapulgite ternary nanocomposite, and the various techniques including gel permeation chromatography, rheometer, transmission electron microscope, dynamic mechanical analysis were used to examine the degradation of polycarbonate (PC) and the nanocomposite morphology. The results showed that the molecular weight degradation of PC triggered by attapulgite (AT) during the direct blending process was inhibited effectively by using two-step melt blending, in which AT was blended with polypropylene (PP) prior to compound with PC. The morphology of encapsulation was formed in the PC matrix, where PP encapsulates AT fibrillar single crystals to form a core-shell inclusion. Dynamic mechanical analysis (DMA) measurements showed that the PC/PP/AT ternary nanocomposites were more effective than conventional PC/PP blends in reinforcement, meanwhile the addition of AT in the ternary nanocomposites shifted the glass transition temperature of the PP phase to a higher value.