Silver-embedded modified hyperbranched epoxy/clay nanocomposites were prepared at different wt.% of octadecyl amine-modified montmorillonite at a constant silver concentration (1 wt.%). UV-visible, XRD and TEM studies confirmed the formation of silver nanoparticles. Compared to the system without silver and clay, the gloss from 70 degrees to 94 degrees, scratch hardness from 4 to 5.8 kg, impact strength from 60 to 90 cm, tensile strength from 8.5 to 15.5 MPa, adhesive strength from 5 to 7.1 x 10(9) N/m, flexibility from >6 to <4 mm, and thermostability from 230 to 260 degrees C increased for the modified system. Resistance to aqueous 10% HCl, 0.5% NaOH, 10% NaCl also increased. The nanocomposites showed antibacterial activity in well diffusion assays against Staphylococcus aureus (ATCC11632), Bacillus subtilis (ATCC11774), Escherichia coil (MTCC40). Pseudomonas aeruginosa (MTCC7814) and Klebsiella pneumoniae (ATCC10031). The results showed that these nanocomposites have potential to be used as antimicrobial materials. (C) 2012 Elsevier Ltd. All rights reserved.