A method for preparing organoclays from smectites for use as rheological control agents and in the preparation of nanocomposites. Typically, the clay is dispersed in water, and a substantially monomolecular layer of a water soluble polymer is applied to the surfaces of the clay. A surfactant is also applied to the clay to modify the surface hydrophilic/hydrophobic balance of the clay, and the organoclay is separated out for subsequent use.