Melt blending of maleic anhydride-grafted polypropylene (PPgMA) and organically modified clay nanocomposites was first carried out in a plasticorder. The structure was investigated with x-ray diffraction (XRD) and transmission electron microscopy (TEM). The interfacial interaction between PB3150 compatibilizer and 130 clay surface was altered with the addition of different loadings of PB3150. It was found at the PB3150 compatiblizer gave rise to a high degree of clay dispersion beyond the PB3150/130 weight ratio of 3. We then also modified polypropylene/organoclay nanocomposites with different loadings of PB3150 on a twin-screw extruder. When the PB3150 loading exceeded 15 wt%, extensive exfoliation of clay was observed. The relative complex viscosity curves also revealed a systematic trend with the extent of exfoliation and showed promise for quantifying the hybrid structure of the nanocomposites. Mechanical properties and thermal stability were determined by tensile and impact tests and thermogravimeric analysis (TGA), respectively. Although high loading of PB3150 leads to better clay dispersion in the polypropylene nanocomposites, it causes deterioration in both mechanical and thermal properties of the hybrid systems.