The present work focuses on the morphology and properties of polycarbonate (PC)/clay nanocomposites prepared through melt blending and solution blending at two different loadings of organoclay (0.5 and 1 phr). The oraganoclay was prepared by incorporating thermally 2-oxopropyl triphenyl phosphonium ion (OTPP) into the clay gallery with an intention to preserve the optical transparency of PC in the PC/clay nanocomposites. An increase in gallery height from 1.24 to 1.86 nm along with the extraordinary thermal stability (1.34% wt loss at 280 C, after 20 min) of the OTPP modified montmorillonite (OTPP-MMT) made it suitable for retention of optical transparency of PC and delamination of the clay platelets in the nanocomposites. The morphological analysis revealed that the clay platelets were randomly dispersed into the PC matrix. An increase in glass transition temperature (T g ) as well as thermal stability of the PC in the nanocomposites was evident from thermal analysis. The strength and modulus of PC increased extensively with increase in OTPP-MMT loading in the nanocomposites. The nanocomposites were found to retain optical transparency of PC without generation of any color in both the blending technique. POLYM. COMPOS., 37:199-212, 2016.