Wood polymer nanocomposite (WPC) was prepared by solution blending of high density polyethylene, low density polyethylene, polypropylene and polyvinyl chloride (1:1:1:0.5) with wood flour and nanoclay. Xylene and tetrahydrofuran were used as solvent and the ratio was optimized at 70:30. TEM study revealed better dispersion of silicate layers in WPC loaded with 3 wt% of clay. WPC loaded with 3 wt% nanoclay exhibited higher thermal stability compared to WPC loaded with 1 and 5 wt% clay. The storage and loss modulus were found to enhance on incorporation of clay to WPC. The damping peak was found to be lowered by the addition of clay to WPC. Limiting oxygen index value increased due to incorporation of nanoclay. WPCs were subjected to exposure to cellulase producing Bacillus sp. and it showed the growth of bacteria as revealed by SEM study. Mechanical properties of WPC decreased due to degradation by bacteria. Water vapour uptake of WPC decreased due to addition of nanoclay.