A novel in situ composite comprised of kaolin clay fillers and polyamide 6 (Nylon-6) was synthesized via a colloidal approach by suspending kaolin particles in aqueous caprolactam and then polymerizing the caprolactam under elevated temperature and pressure. This in situ polymerization technique enables the deposition of nylon molecules directly onto the filler surface. It offers a much larger contact surface area for the nylon molecules to interact with the filler particles and enhances filler/matrix interaction through polymer miscibility. The kaolin particles were shown to be uniformly dispersed in Nylon-6 matrix without appreciable agglomeration. In the highly clay-loaded composites such as the 50/50 kaolin/Nylon-6 in situ composite, the deposited nylon molecules probably form a coated layer on the filler particles. This kind of nylon coated fillers may be applied as a reinforcing entity to commercial Nylon-6 or -66 by improving particle dispersion and melt processability. The 50/50 kaolin/Nylon-6 in situ composites have been used as a masterbatch for blending with commercial Nylon-6 and Nylon-66 to take advantage of their good properties and to reduce cost. Rheology and mechanical properties of the masterbatch/nylon composites have been investigated in comparison with those of the conventional melt-mixed composites. The improvement of rheological and mechanical properties of the in situ composites has been discussed in relation to the composite structure.