Surface tracking has been one of the challenges for outdoor organic insulations, in electronic and electrical devices. In this paper, surface tracking behavior of nano-MgO/epoxy composite samples were measured according to the standard IEC 60112. Improved tracking resistance was obtained in nanocomposites with an 18.75% uplift in the comparative tracking index, and a decrease of 58.20% in the surface ablation area at a fixed 425 V. It was observed that the tracking resistance and surface hydrophobicity shared the same tendency—both, the comparative tracking index and surface contact angle increased with an increase of the nanofiller content. Samples with better hydrophobicity exhibited a higher tracking resistance. It could be the case that the conductive pathway of contamination was harder to form, as a result there were fewer discharging processes. With the development of surface tracking, the surface contact angle abruptly decreased, at first, and tended to be constant, which was also accomplished with the failure of samples. In addition, reduced surface resistivity was also found in the nanocomposites, which was beneficial for releasing surface charges and inhibiting distortions in the electric fields.