Epoxy/clay nanocomposites were prepared using a conventional diglycidyl ether of bisphenol A (DGEBA) epoxy, cured with diethyltoluene diamine (DETDA). The nanocomposites were characterized by dynamic mechanical analysis. A modest increase in glass transition temperature and significant increase in storage modulus were achieved as a result of incorporation of clay. The formation of nanocomposite was confirmed by wide-angle X-ray analysis. The higher impact strength of the nanocomposite compared the DGEBA matrix was explained in terms of with the morphology observed by SEM.