The objective of this study is to explore the potential of layered zinc hydroxide nitrate modified with sodium benzoate as nanoparticle in thermoplastic polyester elastomer (TPEE). The organically modified zinc hydroxide nitrate was compounded with TPEE using solution blending method. The nanocomposite structure was characterized by means of X-ray diffraction and transmission electron microscopy. The results showed that the nanoparticle was homogenously dispersed in TPEE matrix, and partially exfoliated structure was formed. The thermal behavior, mechanical and thermal combustion properties of the novel nanocomposite were studied respectively through differential scanning calorimeter (DSC), dynamic mechanical analysis (DMA) and microscale combustion calorimeter (MCC). For the nanocomposite containing 7 wt% nanoparticle, the crystallization temperature evaluated by DSC was increased by 10 degrees C. The storage modulus at -95 degrees C measured by DMA was improved by around 26%. The heat release capacity (an indicator of a material fire hazard) from MCC testing was reduced by about 56% (compared to the results of neat TPEE). (c) 2013 Published by Elsevier B.V.