Epoxy modified Mesua ferrea L. seed oil (MFLSO) based polyurethane nanocomposites with different weight % of clay loadings (1%, 2.5% and 5%) have been evaluated as biocompatible materials. The nanocomposites were prepared by ex situ solution technique under high mechanical shearing and ultrasonication at room temperature. The partially exfoliated nanocomposites were characterized by Fourier transform infra-red (FTIR), X-ray diffraction (XRD), scanning electron microscopy (SEM) and transmission electron microscopy (TEM) techniques. The mechanical properties such as tensile strength and scratch hardness were improved 2 and 5 times, respectively by nanocomposites formation. Even the impact resistance improved a little. The thermostability of the nanocomposites was enhanced by about 40 degrees C. Biodegradation study confirmed 5-10 fold increase in biodegradation rate for the nanocomposites compared to the pristine polymers. All the nanocomposites showed non-cytotoxicity as evident from RBC hemolysis inhibition observed in anti-hemolytic assay carried over the sterilized films. The study reveals that the epoxy modified MFLSO based polyurethane nanocomposites deserve the potential to be applicable as biomaterials. (c) 2009 Published by Elsevier Ltd.