The interest in clay polymer nanocomposites (CPN) materials, initially developed by researchers at Toyota, has grown dramatically over the last decade. They have attracted great interest, both in industry and in academia, because they often exhibit remarkable improvement in materials' properties when compared with virgin polymer or conventional micro- and macro-composites. These improvements can include high moduli, increased strength and heat resistance, decreased gas permeability and flammability, optical transparency and increased biodegradability of biodegradable polymers. Such enhancement in the properties of nanocomposites occurs mostly due to their unique phase morphology and improved interfacial properties. Because of these enhanced properties they find applications in the fields of electronics, automobile industry, packaging, and construction. This study aims at investigating the mechanical property enhancement of polyaniline (PANI) intercalated with montmorillonite (MMT) clay. The MMT-PANI nanocomposites displayed improved mechanical properties compared to the neat polymer or clay. The enhancement was achieved at low clay content probably due to its exfoliated structure. The increased interfacial areas and improved bond characteristics may attribute to the mechanical property enhancement. (C) 2008 Elsevier B.V. All rights reserved.