Nanocomposites based on polypropylene (PP) and unmodified Montmorillonite were prepared using a novel elaboration route based on a water-assisted extrusion process. Unmodified Montmorillonite, high shear compounding together with injection of aqueous suspension and reactive processing technology were used. Different aqueous suspensions containing cationic or anionic surfactants, and a compatibilizer (PP-g-MA) were injected during extrusion to promote clay dispersion. For a comparison purpose, a commercial PP/clay masterbatch was melt mixed to PP. Structural, morphological, and rheological characterizations indicate clearly that the cationic suspensions ease the dispersion of clay platelets in the PP matrix. No full exfoliation is, however, obtained, and the system remains still less homogeneous than the nanocomposite based on the commercial masterbatch. Nevertheless, mechanical and thermal characterizations of the nanocomposites based on cationic surfactants demonstrate the efficiency to disperse clay in the polymer matrix, and the effect on the ductility compared to usual PP nanocomposites is promising. POLYM. ENG. SCI., 49:2276-2285, 2009. (C) 2009 Society of Plastics Engineers