Novel bioengineering functional copolymer‐g‐biopolymer‐based layered silicate nanocomposites were fabricated by catalytic interlamellar bulk graft copolymerization of L‐lactic acid (LA) monomer onto alternating copolymer of maleic anhydride (MA) with 1‐octadecene as a reactive matrix polymer in the presence of preintercalated LA…organo‐MMT clay (reactive ODA‐MMT and non‐reactive DMDA‐MMT) complexes as nanofillers and tin(oct)2 as a catalyst under vacuum at 80°C. To characterize the functional copolymer layered silicate nanocomposites and understand the mechanism of in situ processing, interfacial interactions and nanostructure formation in these nanosystems, we have utilized a combination of variuous methods such as FT‐IR spectroscopy, X‐ray diffraction (XRD), dynamic mechanical (DMA), thermal (DSC and TGA‐DTG), SEM and TEM morphology. It was found that in situ graft copolymerization occurred through the following steps: (i) esterification of anhydride units of copolymer with LA; (ii) intercalation of LA between silicate galleries; (iii) intercalation of matrix copolymer into silicate layers through in situ amidization of anhydride units with octadecyl amine intercalant; and (iv) interlamellar graft copolymerization via in situ intercalating/exfoliating processing. The main properties and observed micro‐ and nanoporous surface and internal core–shell morphology of the nanocomposites significantly depend on the origin of MMT clays and type of in situ processing (ion exchanging, amidization reaction, strong H‐bonding and self‐organized hydrophobic/hydrophilic interfacial interactions). This developed approach can be applied to a wide range of anhydride‐containing copolymers such as random, alternating and graft copolymers of MA to synthesize new generation of polymer‐g‐biopolymer silicate layered nanocomposites and nanofibers for nanoengineering and nanomedicine applications. Copyright © 2014 John Wiley & Sons, Ltd.