In order to enhance the elongation at break, the ablation resistant properties as well as the tensile strength of the thermal insulating materials, organo-montmorillonite (OMMT) was introduced into the short aramid fibers reinforced Ethylene-Propylene-Diene Monomer (EPDM) based nanocomposites. The effects of OMMT content on the mechanical and ablative properties of the nanocomposites were investigated systematically. X-ray diffraction (XRD) and transmission electron microscopy (TEM) confirm that EPDM-matrix has been intercalated into OMMT interlayers after a mixing process on a two-roll mill. The brittle fracture of nanocomposites also indicates that OMMT can lubricate aramid fiber to weaken the interfacial adhesive strength between the fibers and the matrix. As a result, the tensile strength and elongation at break are both improved sharply with OMMT content increasing from 1 phr to 7 phr. However, thanks to the inevitable agglomeration of OMMT with high loading inside the nanocomposites, the tensile strength and elongation at break reduce gently once OMMT is over 7 phr. Furthermore, the ablation resistant properties are improved greatly by increasing OMMT from 1 phr to 11 phr. Therefore, the optimal content of OMMT is 7-11 phr for the thermal insulating nanocomposites with big elongation and excellent ablation resistant properties.