Nylon 11/organoclay nanocomposites have been successfully prepared by melt-compounding. X-ray diffraction and transmission electron microscopy indicate the formation of the exfoliated nanocomposites at low clay concentrations (less than 4 wt%) and a mixture of exfoliated and intercalated nanocomposites at higher clay contents. Thermogravimetric and dynamic mechanical analyses as well as tensile tests show that the degree of dispersion of nanoclay within polymer matrix plays a vital role in property improvement. The thermal stability and mechanical properties of the exfoliated nylon 11/clay nanocomposites (containing lower clay concentrations) are superior to those of the intercalated ones (with higher clay contents), due to the finer dispersion of organoclay among the matrix.