The new biobased nanocomposites are processed from anhydride-cured epoxidized linseed oil (ELO)/ or octyl epoxide linseedate (OEL)/diglycidyl ether of bisphenol F (DGEBF) epoxy matrix and organomontmorillonite clay. The selection of anhydride curing agent and biobased epoxy resulted in an excellent combination to provide an epoxy matrix having high elastic modulus, high glass transition temperature, and high heat distortion temperature (HDT), with higher amounts of functionalized vegetable oil (FVO), compared with amine-cured biobased epoxy. The sonication technique was utilized to process the organically-modified clay nanoplatelets in the glassy biobased epoxy network resulting in nanocomposites where the clay nanoplatelets are almost completely exfoliated and homogeneously dispersed in the epoxy network. The processed exfoliated clay nanocomposites showed higher storage modulus compared with the neat epoxy containing the same amount of FVO. Therefore, the lost storage modulus with larger amount of FVO can be regained with exfoliated clay nanoreinforcement. (C) 2004 Elsevier Ltd. All rights reserved.