Polycarbonate nanocomposites were prepared by melt processing from two surface-modified montmorillonite organoclays. The intercalation spacing and degree of the dispersion were characterized with wide-angle X-ray diffraction and transmission electron microscopy, respectively. The polycarbonate nancomposites showed rather good dispersion of nanoclay, with a mixture of exfoliated, intercalated, and confined morphology. The effect of nanoclay on the mechanical response of specimens subjected to tensile and impact loading was investigated. Results demonstrated that nanocomposites based on nanoclay possess increased Young's modulus and yield strength. However, their ductility upon tensile loading is significantly affected. A transition from ductile to brittle deformation occurs at studied clay loadings. Notched impact strength experiments supported this, showing that impact strength decreases significantly as nanoclay content increases from 1 to 5 wt%, regardless how the nanoclay surface was modified. Thermal analysis demonstrated that addition of nanoclay leads to decreased thermal stability of polycarbonate suggesting, enhanced dynamics of polymer chains. Finally, the tribological properties of selected specimens were evaluated using a pin-on-disc, and the effect of nanoclay fillers on tribological properties is discussed. POLYM. ENG.