The generation of nanocomposites upon intercalation and exfoliation of clay tactoids using melt compounding is a difficult process. In this study various polymeric binders were melt compounded with organophilic clay particles using myriad methods, including sonication, batch mixing, and twin screw extrusion. The characterization of the compounded samples employing X-ray diffraction (XRD) and transmission electron microscopy (TEM) revealed that there is little intercalation and exfoliation when nonpolar poly(dimethyl siloxane) (PDMS) and poly(propylene) (PP) binders were used, resulting in no significant changes in the dynamic properties of the suspensions upon small-amplitude oscillatory shearing. On the other hand, when polar polymeric binders, i.e., silanol terminated poly(dimethyl siloxane) and maleic anhydride modified PP were used for compounding with organoclays, TEM and XRD revealed intercalation with some partial exfoliation, resulting in increases in the dynamic properties, along with sensitivity to the thermomechanical history during processing. These results reinforce earlier findings, which suggest that the interfacial properties between the organoclays and the polymeric binders need to be tailored properly to enable the generation of nanocomposites of organoclays using melt compounding technologies. (c) 2007 Wiley Periodicals, Inc.