The Hybrid Nanocomposite (HNC) laminates are processed by reinforcing the chopped strand mat glass fiber and organically modified montmorillonite clay (OMT) in the polyester matrix. The different percentage by weight (1, 2, 3, and 5% ) of OMT are mixed by high speed shear mixer into the polyester matrix and then the HNC laminates are fabricated by introducing pre-mixed polyester-clay into the CSM by hand lay-up technique. A tensile test result reveals that nanoclay in polyester matrix significantly improves the tensile modulus and strength of HNC. The results also indicate that increasing the amount of nanoclay beyond 2% by weight reduces the mechanical properties but surpassing the basic glass fiber filled system. The reinforcing effect of clay enhances the flexural modulus and strength. Considerable improvement in impact energy absorption is seen from the impact test. Dynamic mechanical analysis shows that incorporation of nanoclay improves the storage modulus and Loss tangent of HNC. Free vibration tests and logarithmic decrement methods are used to predict the dynamic characteristics such as natural frequency, and damping factor for the first four modes of different clay concentrations. Dynamic results show that second phase nanoscale dispersion between the matrix and E-glass fiber significantly enhances the internal damping of hybrid composites.