Gelatin, because of its biodegradability and ecofriendly nature, has been the best choice for controlled release applications. Montmorillonite (MMT) clay shows a very important role in controlling drug delivery. Hence, an attempt was made in this work to prepare gelatin-MMT nanoparticles by desolvation method using acetone as precipitating agent, glutaraldehyde (GA) as crosslinking agent, and water as reaction media for controlled delivery of isoniazid, a drug for tuberculosis. Characterization of the MMT and isoniazid-loaded gelatin-MMT nanoparticles was carried out using Fourier transform infrared spectroscopy, X-ray diffraction study, scanning electron microscopy study, and transmission electron microscopy study. The effect of MMT on gelatin nanoparticles was evaluated in terms of water uptake studies, and subsequently to the release of isoniazid drug in buffer solution at pH 1.2 (gastric pH) and pH 7.4 (intestinal pH). Swelling experiment indicated that the gelatin nanoparticles were very sensitive to the pH environment. The release profile of drug was studied by a UV-Visible spectrophotometer. Cytotoxicity study revealed that MMT-containing nanoparticles showed less cytotoxicity than MMT-free nanoparticles.