We are presenting a clay (montmorillonite) based method of reintroducing plastics back into the market without subjecting them to extended processing methods. We have prepared montmorillonite/recycled polymer materials with recycled polystyrene (R-PS) and recycled polyethylene (R-PE). R-PS was melt mixed with as-received organomodified montmorillonite or blowing agent treated organomodified montmorillonite which led to intercalated/exfoliated clay/polymer nanocomposites. Similarly, R-PE was melt compounded, with or without the addition of a compatibiliser with the above mentioned organomodified clay minerals which resulted in conventional composite formation. In the case of R-PS, the thermal degradation temperature of the materials increased with the presence of clay minerals, whereas for R-PE based materials it was observed that the thermal degradation temperatures decreased with the presence of clay minerals. Overall it was observed that the presence of clay minerals improved the stiffness of the materials. The use of blowing agent treated organomodified clay minerals in R-PS led to nearly doubled impact strength compared to organomodified clay/R-PS nanocomposites.