Natural rubber (NR) vulcanizates exhibit good mechanical properties compared to vulcanizates of synthetic rubbers. Incorporation of a conventional filler at higher loadings to NR enhances its modulus, while reduction in tensile strength and elongation. This paper presents a new strategy for development of a NR‐clay nanocomposite with enhanced mechanical properties by incorporation of lower loadings (2–8 phr) of cetyl trimethyl ammonium bromide modified montmorillonite clay (OMMT‐C) under acid‐free environment. The effect of OMMT‐C loading on cure characteristics, rubber‐filler interactions, crosslink density, dynamic mechanical thermal properties, and mechanical properties were evaluated. Incorporation of OMMT‐C accelerated the vulcanization process and enhanced mechanical properties. X‐ray diffraction analysis and scanning electron microscopy images revealed that the formation of intercalated clay structures at lower OMMT‐C loadings, and clay aggregates at higher loadings. A nanocomposite at OMMT‐C loading of 2 phr exhibited the best balanced mechanical properties, and was associated with highest crosslink density and rubber–filler interactions. © 2018 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2018, 135, 46502.