The recent developments in research of intercalation compound of polymer/clay nanocomposites were outlined in this paper. According to the differences of intercalation principles and intercalation ways, the preparing methods of intercalation were classified into three categories, (1)monomer intercalation;(2)polymer intercalation in solution; (3)polymer melt-intercalation. Kinetics and thermodynamics principle of intercalation were analyzed briefly. The excellent properties of nanocomposites and its applications were also introduced. The developments and applications of polymer/clay nanocomposites are prospected in different fields.