A series of composite materials were produced incorporating polyhedral oligomeric silsesquioxane (POSS) derivatives into polycarbonate (PC), by melt blending. Significant differences in compatibility were observed depending on the nano-scale filler's specific structure: trisilanol POSS molecules generally provided better compatibility with PC than fully-saturated cage structures, and phenyl-substituted POSS grades were shown to be more compatible with PC than fillers with other functional groups. Trisilanolphenyl-POSS/PC composites possess the best overall performance among the POSS materials tested. The high compatibility between the trisilanolphenyl-POSS and polycarbonate matrix results in generation of transparent samples Lip to 5 wt% POSS content. Slightly enhanced mechanical properties including tensile and dynamic mechanical modulus are observed with the increase of trisilanolphenyl-POSS loading at the cost of decreasing ductility of the nanocomposites. Importantly, upon orientation of the PC/POSS nanocomposite, crystallization of POSS within the oriented material results-this observation is consistent with a growing number of observations which suggest that 'bottom-up' formation of structures incorporating multiple POSS cages result from orientation of these nanocomposites, and that the hybrid organic-inorganic inclusions may be at the heart of observed nano-scale reinforcement. (c) 2005 Elsevier Ltd. All rights reserved.