Poly(phenylene sulfide) (PPS)/poly(butylene terephthalate) (PBT) (60/40 w/w) blend nanocomposites (PPS/PBTs) were prepared by direct melt compounding of PPS, PBT, and organoclay. The morphology and rheology of PPS/PBTs were investigated using scanning electron microscope and transmission electron microscope as well as parallel plate rheometer. The intercalated clay tactoids are selectively located in the continuous PBT phase due to their nice affinity. A novel morphology evolution of the immiscible blend matrices is observed with increase of clay loadings. Small addition of clay increases the discrete PPS spherulite domain size. With increasing loading levels, the PPS phase transform to the fibrous structure and finally, to the partial laminar structure at the high loading levels, in which shows a characteristic of large-scaled phase separation. The presence of clay, however, does not impede the coalescence of the PPS phase because the phase size increases with increasing clay loadings. The elasticity and blend ratio of two matrices are proposed as the important roles on the morphological evolution. Moreover, the laminar structure of PPS phase is very sensitive to the steady shear flow and is easy to be broken down to spherulite droplet at the low shear rate. However, high shear level is likely to facilitate the coalescence of those PPS phase and finally to phase inversion, both contributing to increases of the dynamic modulus after steady shear flow. In conclusion, the morphology of the immiscible polymer blend nanocomposites depends strongly on both the clay loadings and shear history. (c) 2008 Wiley Periodicals, Inc.