The organophilic montmorillonite clay and poly(ethylene oxide) (PEO) nanocomposites were intercalated by a solvent casting method using chloroform as the cosolvent. The prepared nanocomposites were characterized by ab X-ray diffraction method to examine their microstructure, Rheological properties of both the PEO/clay nanocomposites and the immiscible PEO/clay blends were investigated via a rotational rheometer in steady shear mode with a parallel plate geometry. The shear thinning viscosity data were fitted with Carreau model, which showed that steady shear viscosity increases with increasing clay loading. The hysteresis phenomenon is observed to be enhances with clay loading. PEO/clay nanocomposites exhibit higher zero-shear-rate viscosity and sharper shear thinning behaviors that immiscible PEO/clay blends.