It was shown that chitosan and hydroxy-aluminum pillared montmorillonites were excellent materials for the removal of dyes and metal ions from effluent of dying and finishing. Chitosan/ hydroxy-aluminum pillared montmorillonite nanocomposites are expected to play a multiplex role in the treating process. In this study, the nanocomposite was prepared by incorporating hydroxy-aluminum pillared montmorillonite into chitosan solution that diluted acetic acid was used as solvent for dissolving the chitosan. The ratio of chitosan to the cationic exchange capacity of the montmorillonite was about 1:1, 2:1, 3:1, 4:1 and 6:1, respectively. The nanocomposites were characterized by XRD (X-ray diffraction), SEM (Scanning Electron Microscopy). The experimental results indicated that the presence of hydroxy-aluminum cation was in favor of the chitosan intercalation and the interlayers of MMT was intercalated with the bilayers of chitosan sheets. and they can be used in absorption of organic and metal ions for dying and finishing effluent.