Sodium fluorohectorite (FH) was dispersed in polystyrene (PS) by direct melt blending with and without a master batch composed of PS and FH and produced by latex compounding. FH was not intercalated by PS when it was prepared by direct melt compounding. In contrast, FH was well dispersed (mostly intercalated) in PS via the PS-latex-mediated predispersion of FH following the master-batch route. The dispersion of FH was studied with transmission and scanning electron microscopy and X-ray diffraction techniques and discussed. The nanocomposites produced by the master-batch technique outperformed the directly melt-compounded microcomposites with respect to stiffness, strength, and ductility according to dynamic mechanical analysis and static tensile tests. (c) 2007 Wiley Periodicals, Inc.