AbstractMontmorillonite type clay, (PK‐802) is modified by the bifunctional modifiers (2‐phenylimidazole/benzalkonium chloride, PI/BEN or 2‐methylimidazole/benzalkonium chloride, MI/BEN) with different ratio, which contain a curing agent, BEN, and the promoters/accelerator (PI and MI). These two modifying agents are simultaneously intercalated into the gallery space of pure PK‐802. The novolac cured epoxy nanocomposites are prepared with this modified clay by crosslinking polymerization reaction. Wide‐angle X‐ray diffraction is used to measure the resulting d‐spacing of modified PK‐802 and the nanocomposites. Thermo‐gravimetric analysis is used to characterize the thermal properties of the nanocomposites. The morphology of the nanocomposites is investigated using transmission electron microscopy techniques. Well dispersion of clay into the novolac cured epoxy‐clay nanocomposites resulted when simultaneously both the modifying agents with 5:5 mole ratios are used to modify the clay instead of using single modified agent. POLYM. COMPOS., 2008. © 2008 Society of Plastics Engineers