Poly(ethylene oxide) (PEO)/clay nanocomposites were prepared by a solution intercalation method using chloroform as a solvent. The nanocomposites were characterised by X-ray diffraction (XRD), differential scanning calorimetry (DSC), hot-stage polarized optical microscopy (POM), Fourier transform infrared spectroscopy (FT-IR), tensile analysis, dynamic mechanical analysis (DMA) characterisation techniques. Formation of nanocomposite was confirmed by X-ray diffraction (XRD) analysis. A decrease in PEO crystallinity in case of nanocomposite, was confirmed by a decrease in the heat of melting and spherulite size as indicated by DSC and POM studies, respectively. Improvement in tensile properties in all respect was observed for nanocomposites with optimum clay content (12.5 wt%). DMA studies indicate an increase in loss peak temperature and broadening of loss peak as a result of clay intercalation. (c) 2006 Elsevier Ltd. All rights reserved.