New composites were prepared from dried waste mud containing clay (Clay) and maleated polyethylene (MPE) by melt mixing. Scanning electron microscopy showed strong adhesion of MPE to Clay in the MPE-Clay composite, and this was probably due to the increased compatibility between MPE and Clay. With an increase in the Clay concentration to 60 wt %, the tensile strength of the MPE-Clay composite increased. Furthermore, the smaller elongation of the MPE-Clay composite indicated effective transfer of the high tensile strength of Clay to the MPE matrix through the strong adhesion between Clay and MPE. (c) 2005 Wiley Periodicals, Inc.