Organic vermiculite (OVMT) prepared from vermiculite (VMT), with high aspect ratio and orderly arranged platelets intercalated by octadecyl trimethyl ammonum bromide (OTAB), was used as a synergistic agent on the flame retardancy of a polypropylene/intumescent flame retardant (PP/IFR) system. The flammability and thermal stability of PP/IFR/OVMT composites were investigated by limiting oxygen index (LOI), UL-94 testing, cone calorimetry tests, and thermogravometric analysis. The results of LOI and UL-94 testing showed that low loading of OVMT improved the flame retardancy and retarded dripping for PP/IFR composites. OVMT, with 1% loading, increased the char residue of PP/IFR composites and could act as an effective additive for improvement in flame retardancy, which was confirmed by the cone data. The char layer morphological structures observed by scanning electron microscopy (SEM) showed that OVMT with 1% loading can promote formation of a continuous and compact intumescent char layer. Raman spectroscopy results indicated that the OVMT or its pyrolytic products led to a decrease in size of the carbonaceous micro-domain during combustion, resulting in formation of more compact charred layers. Thus, OVMT with 1% loading showed a synergistic effect with IFR in the combustion of the PP/IFR composites.