This investigation deals with the morphology and properties of polycarbonate (PC)/clay nanocomposites prepared by melt blending and solution blending, using benzyltriphenylphosphonium modified montmorillonite (BTPP+-MMT) clay. Isothermal thermogravimetric analysis of the BTPP+-MMT at 280 degrees C revealed higher stability of the BTPP+-MMT clay against thermal degradation at the processing temperature of PC. Wide angle X-ray diffraction, transmission electron microscopy, and rheological studies indicated the presence of highly delaminated clay silicate layers in PC/BTPP+-MMT nanocomposites. A slight increase in glass transition temperature (T-g) of PC in the nanocomposites suggested the presence of an attractive interaction of PC chains with the clay silicates in the nanocomposites. The tensile strength and modulus of PC was increased with increasing content of clay in the nanocomposites. However, at certain clay loading, tensile strength and Young modulus of the melt blended BTPP+-MMT nanocomposites were significantly higher than that of the solution blended nanocomposites, indicating better dispersion and distribution of the clay silicates in melt blended nanocomposites.