Montmorillonite (MMT) layered clay was treated with poly(ethylene glycol) monolaurate (PEGM) based surfactant with long alkyl chain.PEG600 provided both intercalation between clay layers and compatibilization with polypropylene (PP).The treated clay (PEGM) was added to prepare nanocomposite using a melt intercalation technique (Brabender twin screw extruder).The effect of treated clay on morphological, structural and rheological properties of PP was analysed with transmission electron microscopy (TEM), wide angle X-ray scattering (WAXS), and dynamic rheology (ARES rheometer) respectively.