The focus of this study was the notched impact property of high-density polyethylene (HDPE)organoclay composites and the resultant morphology of impact-fractured surfaces. Composites with a different organoclay content and degree of organoclay dispersion were compared with neat HDPE under identical conditions. The degree of organoclay dispersion was controlled through the use of a compatibilizer, maleic anhydride grafted polyethylene. It was found that the addition of organoclay can slightly increase the elastic modulus and notched impact strength of the composite. When the level of organoclay dispersion was improved by using compatibilizer, elastic modulus and toughness further increased. A significant increase in yield strength was also notable. The presence of organoclay was found to suppress strain hardening of the matrix during tensile testing. The impact-fractured surfaces of failed specimens were studied with scanning electron microscopy. The micromechanism for the increased toughness of HDPE-organoclay composites was discussed. (C) 2009 Wiley Periodicals, Inc. J Appl Polym Sci 113:1887-1897, 2009