In situ polymerization of aniline is done inside the pillared clay matrix. The nonswellable pillared clay confined matrix allows efficient polymerization that leads to nanofibrous morphology. As a result high polymer order and crystallinity is attained and is evident from XRD patterns. The strong interaction between the clay layers and polyaniline (PANI) is understood from FTIR and DRS spectra. Additionally these analytical results suggest that the prepared PANI is in the doped state. The PANI/pillared clay nanocomposite formation gives additional thermal stability to the polymer backbone and is clear from the DTG curves. (c) 2007 Wiley Periodicals, Inc.