The effect of clay loading on the mechanical behavior and melt state linear viscoelastic properties of intercalated polycarbonate (PC) nanocomposites was investigated. At low frequencies, the linear dynamic oscillatory moduli data revealed diminished frequency dependence with increasing nanoclay loading. The 3.5 and 5 wt% clay nanocomposites exhibited dramatically altered relaxation behavior, from liquid-like to pseudo-solid-like, compared to the pure PC and the 1.5 wt% clay nanocomposite. Thermal degradation of PC resulted from the melt compounding of organo-modified nanoclays was evident from the reduction in the glass transition temperature and molecular weight of the PC nanocomposites. These nanocomposites also exhibited a significant decrease in the extent of tensile elongation and ductility with respect to the nanoclay incorporation. A concomitant decrease in the rheological proper-ties at high frequencies was also observed, and was consistent with the lowering of the molecular weight of PC, particularly near or above the percolation threshold of nanoclay. These nanocomposites, nevertheless, exhibited elastic-plastic deformation in compression, regardless of nanoclay content.