Communication: Novolac/layered silicate nanocompsites were synthesized by condensation polymerization of phenol and formaldehyde catalyzed by H-montmorillonite (H-MMT). Exfoliation of the clay was investigated by X-ray diffraction and transmission electron microscopy (TEM). It turned out that the intra-gallery condensation of phenol and formaldehyde played a predominant role in the exfoliation of MMT. Exfoliated clay plates with inter-layer spacings of 10-30 nm were dispersed in the matrix uniformly as shown by the TEM micrograph.