Pristine Carbon Black (CB) has been first oxidised to introduce carboxylic acid functional group on the surface of CB, followed by treating with thionyl chloride. The presence of acyl chloride group in the resultant product has been ascertained by FTIR spectroscopy. The acyl chloride functionalized CB (CB-Ac) has been used as a filler in Acrylonitrile Butadiene Styrene (ABS)/Polyaniline (PANI) blend to improve the mechanical and thermal properties. Further addition of Nanoclay (NC) in the blend has improved the dispersion of fillers in the polymer matrix as confirmed by FESEM images and XRD pattern. The Ultimate Tensile Analysis (UTA) and Dynamic mechanical analysis (DMA) have been studied. The Young modulus has shown increment of 48% and 66% in case of CB-Ac and CB-Ac/NC filled blend, respectively. The ultimate tensile strength has also been found to be increased in CB-Ac and CB-Ac/NC filled blends. DMA has given the insight about the excellent improvement in damping properties of the composites due to filler addition. Themo gravimetric analysis (TGA) and Differential scanning calorimetry (DSC) has been carried out to ascertain the thermal properties. TGA has revealed the excellent augmentation in the flame retardancy and heat resistance of the composites due to CB-Ac/NC loading. DSC study has further verified the improvement in degree of crystallinity due to interfacial attraction between fillers and polymer matrix.