Epoxy-based nanocomposites with 2, 5, and 7 wt% of montmorillonite (MMT) nanoclay were prepared using high shear melt mixing technique. The microstructural features of the nanocomposites were investigated by transmission electron microscopy (TEM). The thermal and mechanical properties were measured using differential scanning calorimetry (DSC), thermogravimetric analyzer (TGA), and dynamic mechanical analyzer (DMA). Further, the effect of voltage, temperature, seawater aging on the electrical conductivity (r DC ) of the nanocomposites was also measured. To understand the free volume behavior upon filler loading, and to observe the connectivity between microstructure and other properties, positron annihilation lifetime spectroscopy was used. The TEM results revealed that MMT nanoparticles were uniformly dispersed in the epoxy matrix. Experimental results showed that the inclusion of 2 wt% MMT nanofiller increased the T g , electrical conductivity, thermal stability, modulus, free volume of the epoxy nanocomposite significantly. This is well explained from the results of T g (DSC and DMA), thermal stability, TGA residue, free volume analysis, and electrical conductivity.