Poly(ethylene terephthalate) (PET) containing 3 wt% of organo-montmorillonite (OMMT) was prepared using twin-screw extruder followed by injection molding. Maleic anhydride-grafted styrene-ethylene/butylene-styrene (SEBS-g-MAH) and N,N 0 -ethylenebis(stearamide) (EBS) were used as impact modifier and dispersing agent. The reprocessing ability of PET/OMMT nanocomposites was studied through three cycles of extrusion. Properties of the reprocessed PET nanocomposites were characterized using intrinsic viscosity measurements, impact tests, thermogravimetric analysis, differential scanning calorimetry, x-ray diffraction (XRD) and scanning electron microscopy. The enhanced intercalation of the OMMT silicate layers in the PET was confirmed using XRD. The intrinsic viscosity, impact strength and thermal stability of PET nanocomposites were reduced after subjecting to three cycles of extrusion. Nevertheless, the retention ability in mechanical and thermal properties of PET/OMMT/EBS nanocomposites was higher than that of PET/OMMT/SEBS-g-MAH counterparts.