Epoxy/clay nanocomposites have been prepared using an diglycidyl ether of bisphenol A (DGEBA) epoxy and its blend with an epoxy functionalized hyperbranched polymer (HBP). The formation of nanocomposites was confirmed by a wide angle X-ray diffraction (WAXD) and transmission electron microscopy (TEM) analysis. The mechanical and dynamic mechanical properties of the nanocomposites were evaluated and compared with the corresponding matrix. The improvement in impact properties in blend and nanocomposites was explained in terms of fracture surface analysis by scanning electron microscopy (SEM). (C) 2003 Published by Elsevier Ltd.