Thermoplastic nanocomposites based on the copolymers of polypropylene (PP)-polystyrene (PS) and organically modified montmorillonite (org-MMT) were produced by using power ultrasonic wave in an intensive mixer. Owing to the unique action of the ultrasonic wave, free radicals of styrene monomers and macroradicals of PP were generated, by which copolymers of PP and PS were formed. Another important aspect of using ultrasonic wave during the mixing process was to enhance nano-scale dispersion of org-MMT by destructing the agglomerates of org-MMT in the polymer matrix. Optimum conditions for the in-situ copolymerization and melt intercalation were studied with various concentrations of styrene monomer, sonication time and different kinds of clay. It was found that a novel attempt carried out in this study yielded further improvement in the mechanical performance of the nanocomposites compared to those produced by the conventional melt mixing process.