Abstract. In this study, maleic anhydride-grafted poly(butylene succinate) (PBS-g-MA) was synthesized via reactive meltgrafting process using different initiator contents. The grafting efficiency was increased with the initiator content, manifested by the higher degree of grafting in PBS-g-MA. The grafting reaction was confirmed through Fourier transform infrared (FTIR) spectroscopy and nuclear magnetic resonance (NMR) spectroscopy. Then, PBS-g-MA was incorporated into organo-montmorillonite (OMMT) filled poly(butylene succinate) (PBS) nanocomposites as compatibilizer. Mechanical properties of PBS nanocomposites were enhanced after compatibilized with PBS-g-MA, due to the better dispersion of OMMT in PBS matrix and the improved filler-matrix interfacial interactions. This was verifiable through X-ray diffraction (XRD), transmission electron microscopy (TEM) and scanning electron microscopy (SEM). Differential scanning calorimetry (DSC) showed that the degree of crystallinity and melting temperature increased after addition of PBS-g-MA. However, the presence of PBS-g-MA did not favor the thermal stability of the nanocomposites, as reported in the thermogravimetry (TGA).