A series of polyamide 6/polypropylene (PA6/PP) blends and nanocomposites containing 4 wt% of organophilic modified montmorillonite (MMT) were designed and prepared by melt compounding followed by injection molding. Maleic anhydride polyethylene octene elastomer (POEgMAH) was used as impact modifier as well as compatibilizer in the blend system. Three weight ratios of PA6/PP blends were prepared i.e. 80:20, 70:30, and 60:40. The mechanical properties of PA6/PP blends and nanocomposite were studied through flexural and impact properties. Scanning electron microscopy (SEM) was used to study the microstructure. The incorporation of 10 wt% POEgMAH into PA6/PP blends significantly increased the toughness with a corresponding reduction in strength and stiffness. However, on further addition of 4 wt% organoclay, the strength and modulus increased but with a sacrifice in impact strength. It was also found that the mechanical properties are a function of blend ratio with 70:30 PA6/PP having the highest impact strength, both for blends and nanocomposites. The morphological study revealed that within the blend ratio studied, the higher the PA6 content, the finer were the POEgMAH particles.