This work focuses on the influence of processing conditions on the nanocomposites structure, i.e. intercalated or exfoliated, and on the enhancement of mechanical properties of polypropylene (PP) nanocomposites. These nanocomposites were prepared using the melt intercalation technique in a co-rotating intermeshing twin screw extruder. In order to optimise processing conditions, both screw speed and barrel temperature profile were changed. The role of the compatibilizer (maleic anhydride grafted polypropylene) was also studied. The results obtained show that the barrel temperature is a very important parameter: using lower processing temperature, the apparent melt viscosity and, consequently, the shear stress are higher and, therefore, the exfoliation of the clay is promoted. Even using optimised processing conditions, exfoliation of clay can be achieved only when an high compatibility between polymer and clay exists: the PP nanocomposites containing maleic anhydride show an exfoliated structure and a sensible enhancement of mechanical properties while PP nanocomposites without compatibilizer show a structure mainly intercalated and a lower improvement of mechanical properties. (c) 2005 Elsevier Ltd. All rights reserved.