Polycarbonate (PC) nanocomposites were prepared by melt intercalation technique in an intermeshing co-rotating twin-screw extruder. Both unmodified (Na+MMT) and organo-modified (Cloisite 10A & OMMT) clays were used for the preparation of nanocomposites. The effect of addition of clays on the morphological and dynamic mechanical properties of PC matrix has been studied. The wide angle X-ray (WAXD) studies reveal a dominated exfoliated morphology of the nanocomposites at a clay content of 5%. The intercalated morphology is predominated upto clay content of 3%. Transmission electron microscopy (TEM) demonstrated the co-existance of intercalated/exfoliated morphology in all the composites. Dynamic mechanical analysis (DMA) shows an increase in storage modulus indicating higher stiffness in case of organomodified clay filled composites as compared to unmodified & virgin matrix.