This study investigated the effect of surface modification of nanoclays on the compatibility of Maleic Anhydride-grafted polypropylene (PP-g-MA)/poly (ethylene oxide) (PEO) blends. Rheological testing confirmed the network formation of nanaoclays of all types. SEM confirmed the emulsifying role of nanoclays by reducing the PEO domain size. For the case of using dialkyl (C18)-modified nanoclays, mechanical testing showed that the elastic modulus and the toughness were respectively improved by 20% and 55% compared to unfilled samples.