A continuous extrusion processing method with high-intensity ultrasonic waves was developed to make a long-chain-branched polypropylene/clay nanocomposite. A multifunctional agent was used to enhance and control the recombination reaction during sonification. The ultrasonic waves induced chain scission and created reactive macromolecules of polypropylene successfully in the continuous extrusion process without any peroxide. The rheological property measurements confirmed that the modified polypropylene had a nonlinear branched structure. Another purpose of dosing high-intensity ultrasonic waves was to enhance nano-scale dispersion during melt mixing of polypropylene and clay. The sonication during processing led to enhanced breakup of the clay agglomerates and reduction in size of the dispersed phase. The observed clay was in the intercalated state without any compatibilizer. The fine dispersion of clay was also quite effective in reducing the end pressure losses in capillary dies and, as a result, significantly improved the extrudate appearance during processing.