The present study has addressed the effects of nanoclay on the properties of polypropylene (PP)/polybutylene terephthalate (PBT) blend fibers such as their dyeability and, rheological and resiliency behaviors which are produced by melt spinning. The results of the differential scanning calorimetry (DSC) analysis indicated that the presence of both nanoclay and PBT significantly influenced the crystallinity of PP which also confirmed their nucleating effects on the nanocomposite fibers. Compared to neat PP fibers, the incorporation of 0.5–1wt.% of nanoclay and 10 wt.% of PBT nanocomposite fibers caused approximately 23% and 52% enhancements in the resiliency and dye uptake respectively without using toxic carriers. The rheological analysis was carried out for investigating the viscoelastic behavior, and microstructural and dispersion of nanoclay in the nanocomposite fibers. The rheological behavior in the small amplitude oscillatory shear (SAOS) test demonstrated the percolation threshold network of the structure of PBT fibrils in the PP matrix. When the PBT domains are fibrillated, the storage modulus (G′) and complex viscosity increase compared to neat PP. Also, the nonterminal behavior at low frequencies indicates the uniform dispersion of nanoclay in fiber nanocomposites. These all cause the improvement of the melt strength of the PP matrix. Transmission electron microscopy (TEM) was used to study the dispersion and localization of nanoclay. Nanoclay has also played a compatibilizing role in the immisible PP/PBT blend and was localized mainly in the PBT disperse and interface, and therefore prevented coalescence. The role of the compatibility of nanoparticles is to decrease the mean diameter of the nano-fibrils to 75 nm, for the hot-drawn nanocomposite fibers, as measured by scanning electron microscopy (SEM). All of the above lead to increasing the melt strength and elasticity of the nanocomposites in the fiber spinning process.