Montmorillonite (MMT) displays excellent cohesion with an unsaturated polyester (UP) matrix to generate a material which exhibits an extensive range of commercial applications. The organic modification of MMT using polyhedral oligomeric silsesquioxanes (POSS) and the effect of POSS-MMT on the thermal, mechanical, and electrical properties of UP are reported here. Transmission electron microscopy (TEM) images were used to characterize the modification of MMT using POSS. Modified MMT (POSS-MMT) was incorporated, at different wt.% (0.5, 1, 3, 5), into UP via in-situ polymerization. The presence of POSS-MMT enhanced the characteristic properties of UP as a consequence of good dispersion in the polymer matrix. Scanning electron microscopy (SEM) images support effective POSS-MMT dispersion leading to tensile strength enhancement of a UP/POSS-MMT nanocomposite (3 wt.% POSS-MMT) by 54.7% as compared to that for unmodified UP. TGA displays a 35 °C improvement of thermal stability (10% mass loss) at 5% POSS-MMT incorporation, while the electrical conductivity is improved by 108 S/m (3 wt.% POSS-MMT) in comparison to that for unmodified UP. The conventional obstacle of UP associated with shrinkage weight loss during curing seems to be moderated with POSS-MMT incorporation (3%) resulting in a 27.8% reduction in shrinkage weight loss. These fabricated nanocomposites expand the versatility of UP as a high-performance material owing to enhancements of properties.