Dynamically vulcanized thermoplastic elastomers nanocomposites (TPV nanocomposites) based on linear low density polyethylene (LLDPE)/reclaimed rubber/organoclay were prepared via one-step melt blending process. Maleic anhydride grafted polyethylene (PE-g-MA) was used as a compatibilizing agent. The effects of reclaimed rubber content (10, 30, and 50 wt %), nanoclay content (3, 5, and 7 wt %), and PE-g-MA on the microstructure, thermal behavior, mechanical properties, and rheological behavior of the nanocomposites were studied. The TPV nanocomposites were characterized by X-ray diffraction, transmission electron microscopy, scanning electron microscopy (SEM), differential scanning calorimeter, mechanical properties, and rheometry in small amplitude oscillatory shear. SEM photomicrographs of the etched samples showed that the elastomer particles were dispersed homogeneously throughout the polyethylene matrix and the size of rubber particles was reduced with introduction of the organoclay particles and compatibilizer. The effects of different nanoclay contents, different rubber contents, and compatibilizer on mechanical properties were investigated. Increasing the amount of nanoclay content and adding the compatibilizer result in an improvement of the tensile modulus of the TPV nanocomposite samples.