Inclusion of nano-clays into hydrogels is an efficient approach to produce nanocomposite hydrogels. The introduction of nano-clay into hydrogels causes an increase in water absorbency. In the present work, Nanocomposite hydrogels based on kappa-carrageenan were synthesized using sodium montmorillonite as nano-clay. Acrylamide and methylenebisacrylamide were used as monomer and crosslinker, respectively. The structure of nanocomposite hydrogels was investigated by XRD and SEM techniques. Swelling behavior of nanocomposite hydrogels was studied by varying clay and carrageenan contents as well as methylenebisacrylamide concentration. An optimum swelling capacity was achieved at 12% of sodium montmorilonite. The swollen nanocomposite hydrogels were used to study water retention capacity (WRC) under heating. The results revealed an increase in WRC due to inclusion of sodium montmorilonite clay. (C) 2010 Wiley Periodicals, Inc. J Appl Polym Sci 118: 2989-2997,2010