Montmorillonite layered clay has been treated with poly (ethylene) glycol (PEG) based surfactants with long alkyl chains. PEG600 possesses both intercalating property between clay layers and compatibilizing property with polypropylene. The treated clay was used to prepare polypropylene clay nanocomposites. Maleic anhydride grafted polypropylene (MA-PP) was added to the mixture of the treated clay and the polypropylene to prevent aggregation. We successfully prepared polypropylene nanocomposite, using solution blending technique. The effect of treated clay on the thermal, structural, and dynamic mechanical properties of polypropylene were analysed with thermogravimetry (TGA), wide angle x-ray scattering (WAXS), transmission electron microscopy, and dynamic mechanical analysis. X-ray diffraction showed that the clay is well dispersed and preferentially embedded in the polymer matrix. The thermal stability enhancement of PP after adding treated clay was determined with thermogravimetry (TGA). The exfoliation degree of the clay decreased with increasing organoclay content. The transmission electron microscopy studies showed a better dispersion of clay in the PP matrix. Furthermore, the dynamic mechanical analysis studies showed an increase in the storage modulus and glass transition temperature for PP nanocomposite with respect to pure polypropylene.