Rubber toughened polypropylene nanocomposites using two types of modified montmorillonite (organoclay) were explored with the objective of achieving an improved balance between stiffness and toughness. The effect of three blending sequences on microstructure and properties of the ternary nanocomposites was also investigated. A commercial grade of ethylene/vinyl acetate copolymer (EVA) containing 18 wt% of vinyl acetate was used as the impact modifier for polypropylene and an acrylic acid grafted polypropylene was used to compatibilize the systems studied. The toughened nanocomposites samples were prepared by melt compounding in a twin-screw extruder; the morphology and mechanical properties of the resulting materials were characterized by X-ray scattering, electron microscopy and tensile and impact testing. The results show that incorporation of EVA increases the toughness of the polypropylene but its stiffness decreased markedly due to the incorporation of the low modulus component. The addition of organoclay increased the modulus slightly for all the ternary nanocomposites with respect to the blend, but it remains lower than that of neat PP. Surprisingly, addition of organoclay to the blends promoted a drastic increase in the notched Izod impact strength and a considerable alteration of the shape of the dispersed EVA phase when the organoclay is located in this phase. Moreover, it was found that the blending sequence effects on the morphology and properties of the mixtures are dependent on the organoclay used. (C) 2009 Elsevier Ltd. All rights reserved.