AbstractExfoliated poly(4, 4′‐oxybis(benzene)disulfide)/vermiculite (POBDS/VMT) nanocomposites were successfully synthesized via in situ melt intercalation of cyclo(4, 4′‐oxybis(benzene)disulfide) oligomers (COBDS) into octadecylammonium‐exchanged VMT (organo‐VMT). The POBDS/VMT nanocomposites were melt fabricated in a two‐step process. First, the COBDS/VMT nanocomposite precursor was fabricated by melt delaminating organo‐VMT with COBDS at a temperature slightly higher than its melting point. Subsequently, exfoliated POBDS‐VMT nanocomposites can be prepared in situ via instant melt ring‐opening polymerization of the COBDS‐VMT nanocomposite precursor. The nanoscale dispersion of VMT layers within POBDS polymer was confirmed by X‐ray diffraction, scanning electron microscopy and transmission electron microscopy. High molecular weight POBDS polymer was formed in a few minutes at the same time as the nanocomposite formation. The results of dynamic mechanical analysis showed that the storage modulus and glass transition temperature of the nanocomposites are much higher than those of the POBDS matrix, even with a very small amount of VMT addition. This methodology provides a potential approach to synthesize high‐performance polymer/clay nanocomposites. Copyright © 2004 Society of Chemical Industry