Abstract-Composites are wonderful materials in the sense of good combination of various engineering properties. The past decade has seen a renewed interest in developing more efficient low cost materials. In this regard, polymer composites have gained much more attention because of their light weight, low cost, ease of fabrication, corrosion resistance, good wear property and so on. In this regard, large quantities of clay minerals (also other micronsized mineral powders) are widely used as reinforcements for polymer matrix composites. This paper concentrates on the effects of particle size of locally available raw clay (bentonite type) on the tensile and thermal stability of polyester matrix polymer composites. At first, composites were developed and then tensile tests were conducted using universal testing machine (UTM, Model: Instron 3369). Thermo-gravimetric analysis (TGA) was also performed on the developed composites materials in order to observe the thermal degradation behaviours of the composites. Experimental results revealed that locally available clay might be a potential source of a very low cost reinforcement material for polymeric materials. However, for better tensile strength and thermal stability raw clay needs to be ground to a finer level.