Following the formulation development from a previous study utilising N-vinylcaprolactam (NVCL) and N-isopropylacrylamide (NIPAm) as monomers, poly(ethylene glycol) dimethacrylate (PEGDMA) as a chemical crosslinker, and Irgacure 2959 as photoinitiator, nanoclay (NC) is now incorporated into the selected formulation for enhanced mechanical performance and swelling ability. In this research, two types of NC, hydrophilic bentonite nanoclay (NCB) and surface-modified nanoclay (NCSM) of several percentages, were included in the formulation. The prepared mixtures were photopolymerised, and the fabricated gels were characterised through Fourier transform infrared spectroscopy (FTIR), cloud-point measurements, ultraviolet (UV) spectroscopy, pulsatile swelling, rheological analysis, and scanning electron microscopy (SEM). Furthermore, the effect of swelling temperature, NC types, and NC concentration on the hydrogels’ swelling ratio was studied through a full-factorial design of experiment (DOE). The successful photopolymerised NC-incorporated NVCL-NIPAm hydrogels retained the same lower critical solution temperature (LCST) as previously. Rheological analysis and SEM described the improved mechanical strength and polymer orientation of gels with any NCB percentage and low NCSM percentage. Finally, the temperature displayed the most significant effect on the hydrogels’ swelling ability, followed by the NC types and NC concentration. Introducing NC to hydrogels could potentially make them suitable for applications that require good mechanical performance.