Poly(ethyl acrylate) (PEA)/poly(methyl methacrylate) (PMMA) emulsion blends that were combined with unmodified montmorillionite (MMT) to improve the physical properties via nanocomposite formation. We prepared a cationic PEA/PMMA latex and used a heterocoagulation process to create a homogeneous dispersion of the clay platelets in the matrix. The cationic PEA/PMMA emulsion blends were prepared using a cationic initiator in the presence of free surfactant, cetyl trimethylammonium bromide (CTABr), followed by mixing with an aqueous slurry of MMT. The PEA/PMMA-MMT nanocomposites could be processed at low temperatures. Low temperature processing prevented the commonly observed discoloration associated with many thermoplastic nanocomposites. DSC, SAXS, TEM and AFM were used to study the dispersion of MMT and morphology of PEA/PMMA-MMT nanocomposites. Tensile stress, elongation at break and Young's modulus demonstrated a significant reinforcing effect of clay. (c) 2006 Elsevier Ltd. All rights reserved.