Polyamide 66/clay, high-density polyethylene (HDPE)/clay and HDPE/PA66/clay nanocomposites were prepared, using a twin-screw extruder. The nanocomposites were characterized by means of transmission electron microscopy (TEM), scanning electron microscopy (SEM), wide angle X-ray diffraction (WAXD), differential scanning calorimetry (DSC), optical microscopy and tensile testing. Effects of processing conditions and clay modifier were evaluated. The results show that exfoliation in the twin-screw extruder is enhanced by the incorporation of mixing and shearing elements and high residence times. Compatibility of the clay modifier with the polymer matrix plays an important role in exfoliation. Clay does not influence the crystal form, melting temperature or crystallinity of PA-66 and HDPE. However, it acts as a nucleation agent, increases marginally the crystallization temperatures, and reduces the crystallite size. Clay in the blend nanocomposites acts as a compatibilizer and changes the morphology of the blend. TEM micrographs suggest the presence of an exfoliated structure in PA-66 and an intercalated structure in HDPE. (C) 2004 Society of Plastics Engineers.