Biobased nanocomposites and composite fibers were prepared from organosolv lignin/organoclay mixtures by mechanical mixing and subsequent melt intercalation. Two organically-modified montmorillonite (MMT) clays with different ammonium cations were used. The effect of organoclay varying from 1 to 10 wt % on the mechanical and thermal properties of the nanocomposites was studied. Thermal analysis revealed an increased in T-g for the nanocomposites as compared with the original organosolv lignin. For both organoclays, lignin intercalation into the silicate layers was observed using X-ray diffraction (XRD). The intercalated hybrids exhibited a substantial increase in tensile strength and melt process-ability. In the case of organoclay Cloisite 30B, X-ray analysis indicates the possibility of complete exfoliation at 1 wt % organoclay loading. (C) 2010 Wiley Periodicals, Inc. J Appl Polym Sci 117: 2877-2881, 2010