Nanocomposites are a class of materials that use molecular-sized particles for reinforcing the polymer matrix. These materials blend an organoclay with polymer to produce a composite with physical and mechanical properties equal to or better than their conventionally filled counterparts but at lower filler loadings. Occasionally, when the processing conditions are not optimized, compaction of the filler materials can occur. This agglomeration of the filler can affect the final properties of the composite by lowering the effective filler concentration and by the creation of stress risers around these agglomerates. This paper addresses the role of extrusion processing as it relates to the dispersion of the organoclay filler. (C) 2004 Society of Plastics Engineers.