Functional copolymer/organo-silicate [N,N′-dimethyldodecyl ammonium cation surface modified montmorillonite (MMT)] layered nanocomposites have been synthesized by interlamellar complex-radical copolymerization of preintercalated maleic anhydride (MA)/ organo-MMT complex as a ‘nano-reactor’ with n-butyl methacrylate (BMA) as an internal plasticization comonomer in the presence of radical initiator. Synthesized copolymers and their nanocomposites were investigated by dynamic mechanic analysis, X-ray diffraction, SEM, and TEM methods. It was found that nanocomposite dynamic mechanical properties strongly depend on the force of interfacial MA…organo-MMT complex formation and the amount of flexible n-butyl ester linkages. An increase in both of these parameters leads to enhanced intercalation and exfoliation in situ processes of copolymer chains and the formation of hybrid nanocomposites. © 2010 Wiley Periodicals, Inc. J Appl Polym Sci, 2010