A sheet sample composed of poly(butylene terephthalate) and clay prepared by solid-state compression was melt-annealed in a rheometer under steady shear flow to investigate the whole hybridization process. The results of the offline morphology and thermogravimetric analysis as well as Fourier transform infrared characterization show that shear flow can reduce the dynamic process of hybridization, facilitating the formation of an intercalated nanoscale structure. With an increase in the shear intensity, the detachment level of clay increases more remarkably than the swollen degree. However, an increase in the shear intensity does not induce an exfoliated structure but can decrease the average thickness of the clay tactoids, leading to a remarkable enhancement in the thermal stability due to the increase in the effective filling volume of the clay. Furthermore, those intercalated nanocomposites annealed at a high shear rate still present a distinct hierarchical structure, which suggests that steady shear is not as good as dynamic or complex shear for promoting hybridization effectively. (c) 2007 Wiley Periodicals, Inc.