Abstract Kaolin clay/poly (butylene terephthalate) (clay/PBT) composites films were prepared by solution casting technique. The scanning electron microscope (SEM) study showed that clay particles were well dispersed and embedded within the PBT matrix. The TGA thermograms showed that the thermal stability of PBT matrix was slightly improved by the incorporation of clay into the polymer matrix. The polarized optical microscopy (POM) study presented that the size of spherulites of PBT was decreased by the incorporation of clay into matrix, which might be due to nucleation effect of kaolin clay. The tensile strength and modulii of PBT polymer matrix were also significantly improved by the addition of clay polymer matrix. The solvent uptake study showed that the uptake of various solvents by clay/PBT nanocomposite were lower than neat PBT.