The wide range of applications associated with nanocomposites is due to their improved properties when compared to conventional composites. In this study, commercial epoxy-based powder coatings were formulated with 2 and 4% (w/w) of an organically modified montmorillonite (OMMT) by incorporation in the melt state (extrusion). These composites were characterized by thermogravimetric analysis (TGA), differential scanning calorimetry (DSC), transmission electron microscopy (TEM) and X-ray diffraction (XDR). The thermal behavior and stability of the epoxy nanocomposites were studied by TGA and DSC. The nanoparticle structure within the polymer matrix was analyzed by XRD and TEM. A predominantly exfoliated structure was observed by TEM, which was confirmed by XDR analysis. The study demonstrated that the nanoclay increases the glass transition and crosslinking temperatures and also enhances the thermal stability of the coating.