The preparation, characterization and properties of novel millable polyurethane/organoclay nanocomposites are reported. Clay treated with methyl tallow bis(2-hydroxyethyl) quaternary ammonium chloride was used as an organoclay for nanocomposite preparation. X-ray diffraction indicated the intercalation of polymer chains inside the interlayer spacings of the clay, Dynamic mechanical analysis showed a significant increase, in storage modulus, and tensile strength increases with increased organoclay loading.