The first successful example of a polymer-clay hybrid was nylon-clay hybrid (NCH), W which is a nano-meter-sized composite of nylon-6 and 1-nm-thick exfoliated aluminosilicate layers of the clay mineral. NCH was found and developed at Toyota Central Research and Development Laboratories over 17 years ago. The NCH containing a few weight percentages of clay exhibits superior properties such as high modulus, high strength, and good gas-barrier properties. The key for the discovery of NCH was the polymerization of a nylon monomer in the interlayer space of the clay. This highlight presents the development of NCH from its discovery to its commercialization. (C) 2004 Wiley Periodicals, Inc.