Abstract: Thermoplastic nanocomposites are prepared by reactive compounding of a nanocomposite versatile masterbatch comprising a partially modified pristine clay and a reactive carrier plastics compound with a thermoplastics matrix polymer wherein the matrix polymer has a main chain directly or indirectly miscible with or reactive with said carrier plastics compound. The matrix polymer may include functional groups reactive with the carrier plastics compound to form a copolymer or a copolymer having at least one region thermodynamically miscible with said matrix polymer and at least one functional group reactive with said reactive carrier plastics compound to form a block copolymer therebetween.