Exfoliated polyvinyl acetate/montmorillonite nanocomposite (PVAc/MMT) was prepared via in situ emulsion polymerization. The resulting PVAc with various organophilic MMT contents was investigated. In the nanocomposite latex preparation, sodium lauryl sulfate (SLS), ammonium persulfate (APS), and poly (vinyl alcohol) (PVA) are used as anionic emulsifier, conventional anionic initiator, and stabilizer, respectively. The samples were characterized using elemental analysis, X-ray diffraction (XRD), scanning electron microscopy (SEM), transmission electron microscopy (TEM), atomic force microscopy (AFM). The XRD and AFM results demonstrate that the MMT well dispersed at molecular level in the PVAc matrix. Thermal properties of the nanocomposite were studied by using differential scanning calorimetric analysis (DSC). The exfoliated PVAc/MMT nanocomposite showed a higher glass transition temperature and a better thermal stability compared to the pure PVAc.