The present work describes the synthesis and characterization of polyurethanamide/organo-montmorillonite bionanocomposites (OBNC) from Linseed oil-a renewable resource. The aim of the work is (i) to widen the scope of application and improve the performance of vegetable oil based polymers, and (ii) to investigate the effect of introduction of modified clay on their structure, morphology, thermal stability, and coating properties. OBNC has been prepared by in situ polymerization of Linseed oil derived diol fattyamide and tolulylene-2,4-diisocyanate in the presence of different contents of OMMT (0.5-2.5 mass % in minimum amount of dimethylformamide) at room temperature. OBNC has been characterized by optical microscopy, FTIR, XRD, TEM, and TGA, which confirm the formation of OBNC. OBNC produced tough, scratch-resistant, impact resistant, flexibility retentive coatings, which cure at room temperature with improved coating performance and thermal stability than virgin polymer. Amongst all the compositions, OMMT-1.5 showed the best coating properties, with good scratch hardness (3.5 kg), impact (passes 200 lb/inch.) and bent test values (passes 1/8 inch). It can be commercially used as effective green coating material in future.