The properties of recycled low temperature biodegradable polycaprolactone-based thermoplastic polyurethane (rTPU), filled with different types of organically modified montmorillonite (MMT) prepared by two-roll milling, were studied. The dependence of rTPU properties on the mastication time and clays content was determined by various structural and physical testing methods. Results show that the melt flow and mechanical properties of rTPU deteriorate with increasing of mastication time, but thermal properties were affected only slightly. rTPU/MMT composites show exfoliated or intercalated structures depending on the nature of organic modifier of clay. MMT reduces slightly rTPU tensile and melt flow properties, but accelerates hydrolytic degradation process. During degradation the weight loss and polydispersity increase significantly in the presence of MMT, but it does not accelerate crystallinity changes. The degradation of rTPU composites with higher hydrophilicity organoclays proceeds faster than that with hydrophobic ones due to the relatively higher interaction with polymer matrix. (c) 2012 Wiley Periodicals, Inc. J. Appl. Polym. Sci., 2013