In this work two types of montmorillonite, a pristine and an organo-modified clay (Cloisite 30B), were employed to produce (polyethylene terephthalate)-based nanocomposites via in situ polymerization. Using water as an intermediate medium, a stable dispersion of pristine clay in ethylene glycol was achieved. However, after polymerization, no significant gain was obtained in terms of delamination of silicate platelets. The polycondensation reaction when using Cloisite 30B was carried out at a temperature as low as 250 degrees C in order to retain a considerable portion of the organo-modifier. The results showed that Cloisite 30B was successfully intercalated by the polymer chains, resulting in a d-spacing increase from 1.9 nm to about 3.6 nm. Although some mono and double silicate layers were observed in microscopy images, the major part of the organoclay remained in a tactoid intercalated form. Sampling during the polycondensation reaction revealed that, in this process, clay was first swelled efficiently by the monomer, and this structure was preserved in the early stage of polycondensation. However, the silicate platelets collapsed with time as the polycondensation progressed and larger molecular weight oligomers were formed. An investigation on the type of impeller used in the polymerization process showed that a slight improvement was achieved in terms of aggregate size and distribution when the anchor impeller was replaced by a helical one.