The effect of incorporation of pristine montmorillonite clay and the corresponding organoclay into rubbery epoxy matrix on its adhesive properties has been investigated. Rubbery epoxy is of particular interest because of its potential for vibration damping applications. It was found that a significant improvement in adhesive properties Occurred as a result of incorporation of organoclay, unlike pristine montmorillonite clay. The improvement is attributed to the reinforcing effect as observed from tensile testing. The reinforcing effect has been explained in terms of a better compatibility and the intercalation of polymer chains into clay galleries.