Complete exfoliation of clay during vanadium-based Zigler-Natta polymerization of ethylene has been successfully carried out by using clay and MgCl2 hybrid supports. MgCl2 offers catalyst loading sites, and the vanadium catalyst is avoided directly anchoring in the surface of the clay, so intercalation catalyst clay/MgCl2/VOCl(3)displays high activity for ethylene polymerization. Exfoliated PE/clay nanocomposites are confirmed by X-ray diffraction (XRD), and transmission electron microscopy (TEM). Strong interaction between the dispersed clay particles and the polymer matrices provides good thermal and mechanical properties. Compared with pure PE, all these nanocomposites show enhancement of the melting temperature (T-m) and the thermal decomposition temperatures. Additionally, the incorporation of clay into the PE matrix significantly improves the mechanical properties of these nanocomposites. The increased tensile strength has been observed in the range of 3.4 to 7.9 MPa. The tensile moduli of the PE/clay nanocomposite are 23.4%-45.3% higher than that of the pure PE.