Unsaturated polyester (UP) toughened epoxy nanocomposites were prepared, and their effective mechanical and thermal properties were studied. Two types of organo-modified montmorillonite (OMMT) clays were used to prepare the nanocomposites. X-ray diffraction (XRD) and Transmission electron microscope (TEM) analysis showed the formation of exfoliated silicate layers in the UP-toughened epoxy matrix. Mechanical tests revealed that nanocomposites (containing 1 wt % OMMT clay) showed an increase in tensile strength to 13.8%, flexural strength to 10% and impact strength to 4% compared with an UP-toughened epoxy blend. The effect of different heating rates on the curing behavior of UP toughened epoxy nanocomposites was investigated using nonisothermal differential scanning calorimetry. The data were interpreted using the Kissinger and Flynn-Wall-Ozawa models to find the curing reaction parameter. The water uptake behavior for nanocomposites increased with the addition of OMMTs.Scanning electron microscopy (SEM) micrographs indicated morphological changes in the impact fractured samples of UP-toughened epoxy nanocomposites. Downloaded by [New York University] at 10:15 14 June 2015 2 KEYWORDS: adhesives with nanoparticles; epoxy/epoxides; mechanical properties of adhesives, thermal analysis, cure/hardening, hydrogen bonding.Highlights:1. Toughened epoxy blends did not shown a reduction in mechanical properties.2. Two types of organo modified montmorillonite (OMMT) clays were incorporated at 0.5, 1, 2 and 3 wt % within a toughened epoxy system, and their effective mechanical, thermal and water absorption properties were systematically investigated.3. The nanoclay content was optimized at 1 wt % based on the mechanical performance of the toughened epoxy nanocomposites.