Abstract. Poly (butylene adipate-co-terephthalate (PBAT) nanocomposites were prepared by melt blending PBAT with 5 wt.% of modified or unmodified montmorillonites (MMT). The effect of the presence of organic modifiers in MMT on the morphological, crystalline, thermal, and mechanical properties of PBAT nanocomposites was evaluated. The dispersion and distribution of the clays were studied by using wide angle X-ray analysis (WAXS), scanning electron microscopy (SEM), and transmission electron microscopy (TEM) analysis. Materials characterization techniques included: contact angle measurements, differential scanning calorimetry (DSC), thermogravimetry (TGA) and surface hardness analysis. As general results, nanocomposites exhibited different level of clay dispersion depending on the clay/organic modifier's chemical affinity with the polymer. Contact angle measurements show increases in the hydrophobicity level of PBAT based CLO30B, this could depict its high potential for packaging applications. In addition, Thermal analysis showed that clays partially hindered kinetics and extent of PBAT crystallization on cooling. In general, thermal properties of PBAT were improved by addition of clays, for a barrier effect of the nanoparticle towards polymer decomposition products ablation. In parallel, addition of clays led to enhancements in polymer hardness. These properties were found to be apparently influenced by clay dispersion level and chemical compatibility between the organic modifier and polymer matrix.