A series of novel facile water dispersible cloisite-g-methacrylic acid copolymers were prepared by graft from method. These graft copolymers were applied on goat skin before and after neutralization processes to produce lightweight, soft, grain tight, and water vapor permeable leather. All the graft copolymers and polymethacrylic acid (PMA) were thoroughly characterized by spectroscopic methods and thermal property changes. The intercalated cloisite-g-methacrylic acid copolymer nanocomposites exhibit a decreasing trend in viscosities with increase in the weight percentage of cloisite. The cloisite-g-methacrylic acid (C-g-MA) copolymers exhibit better thermal stability. All the nanocomposites showed a shear-thickening flow behavior. The stress-strain measurements of leather treated with nanocomposite samples reveal an increase in modulus property with the increase in cloisite content. The low weight percentage graft copolymers nanocomposite treated leathers are lightweight, have better smoothness, and show uniformity in feel, fullness, and load at grain crack.