Abstract Novel elastomeric miscible blend nanocomposites have been prepared by co-reacting isocyanate terminated liquid polyurethane pre-polymer with thiol terminated polysulfide together with chain extender, modified organic nanoclay, and curator. The studies report the influence of nanoclay loading on the morphology, mechanical and thermal properties of the nanocomposites. The morphology and state of dispersion of nanoclays in the nanocomposites were studied by high resolution transmission electron microscopy (HRTEM). It was seen that nanoclay particles were well dispersed in the blend at 1, 3, and 5 wt.% nanoclay loadings. The reactive miscibility of blend was confirmed by differential scanning calorimetry (DSC) and fourier transform infrared spectroscopy (FTIR). The effect of clay loading on thermal stability of polysulfide PS/IPU blend and their nanocomposites was studied by thermogravimetric analysis (TGA). It was observed that thermal stability of nanocomposite progressively increased with increase in nanoclay loading. However, about 123% increment in adhesive strength, 78% increment in tensile strength were observed at 3 wt.% clay loaded nanocomposite when compared to control blend. This enhancement in thermal, adhesion and mechanical properties demonstrate that the resulting nanocomposites can be tailored as novel adhesive and coating materials for aerospace application.