The structure-property relationships of thermoplastic olefin (TPO)-based nanocomposites prepared by melt processing are reported with a main focus on the ratio of maleic anhydride-grafted polypropylene (PP-g-MA) to organoclay. The morphological observations by transmission electron microscopy, atomic force microscopy, and X-ray diffraction are presented in conjunction with the mechanical and theological properties of these nanocomposites. Detailed quantitative analyses of the dispersed clay particles revealed that the aspect ratio of clay particles decreased as clay content increased but increased as the amount of PP-g-MA increased. Analysis of the elastomer phase revealed that the aspect ratio of the elastomer phase increased in both cases. The presence of clay causes the elastomer particles to become highly elongated in shape and retards the coalescence of the elastomer particles. The modulus and yield strength are enhanced by increasing the PP-g-MA/organoclay ratios. High levels of toughness of the TPO can be maintained when moderate levels of (organoclay) MMT and PP-g-MA are used. The theological properties suggested that the addition of clay particles and PP-g-MA has a profound influence on the long time stress relaxation of the TPO nanocomposites. Based on these analyses, it is clear that it is important to optimize the ratio of PP-g-MA and organoclay to obtain the desired balance of mechanical properties and processing characteristics for TPO nanocomposites. (c) 2007 Elsevier Ltd. All rights reserved.