In this study, dynamic mechanical analysis (DMA), thermogravimetric analysis (TGA), and flexural tests were performed on unfilled, 1, 2, 3, and 4 wt% clay filled SC-15 epoxy to identify the effect of clay weight fraction on thermal and mechanical properties of the epoxy matrix. The flexural results indicate that 2.0 wt% clay filled epoxy showed the highest improvement in flexural strength. DMA studies also revealed that 2.0 wt% system exhibit the highest storage modulus and T (g) as compared to neat and other weight fraction. However, TGA results show that thermal stability of composite is insensitive to the clay content. Based on these results, the nanophased epoxy with 2 wt% clay was then utilized in a vacuum assisted resin transfer molding set up with carbon fabric to fabricate laminated composites. The effectiveness of clay addition on thermal and mechanical properties of composites has been evaluated by TGA, DMA, tensile, flexural, and fatigue test. 5 A degrees C increase in glass transition temperature was found in nanocomposite, and the tensile and flexural strengths improved by 5.7 and 13.5 %, respectively as compared to the neat composite. The fatigue strength was also improved significantly. Based on the experimental result, a linear damage model combined with the Weibull distribution function has been established to describe static failure processing of neat and nanophased carbon/epoxy. The simulated stress-strain curves from the model are in good agreement with the test data. Simulated results show that damage processing of neat and nanophased carbon/epoxy described by bimodal Weibull distribution function.