Copolypropylene/organoclay nanocomposites are prepared by melt intercalation method in this research. Two different routes for addition of compatibilizer are examined, i.e. addition in the twin-screw extruder along with the polymer and the clay powder simultaneously and premixing the compatibilizer with the reinforcement in a batch mixer before addition to the polypropylene (PP) matrix. Morphology, tensile and impact properties and deformation mechanisms of the samples made via two procedures are studied and compared with those of the noncompatibilized system. To study the structure of nanocomposites, x-ray diffraction and transmission electron microscopy techniques are utilized. The deformation mechanisms of different samples are examined via reflected and transmitted optical microscopy. The results reveal that introduction of compatibilizer and also the procedure in which the compatibilizer is added to the compound, affect structure and mechanical properties of nanocomposite. The elastic modulus of PP-clay nanocomposite has increased 11.5% with incorporation of compatibilizer. Also, introduction of organoclay without compatibilizer facilitates crazing at the notch tip of PP in 3PB testing. Incorporation of compatibilizer, however, makes difficulties in initiation and growth of crazes at the notch tip. (C) 2009 Wiley Periodicals, Inc. J Appl Polym Sci 114: 3751-3759, 2009