Nanocomposites have attracted a great deal of interest during recent years. Much research has been conducted towards the incorporation of clay particles in a polypropylene matrix. However, the effect of extrusion reprocessing on the material properties for the purpose of recycling has not been studied in-depth. In this study, composites of polypropylene (PP) reinforced with organic modified montmorillonite (MMT) (4 wt%) and coupling agent were subjected to 15 extrusion cycles and compared with virgin PP and PP-coupling agent. The materials were characterized by melt flow index (MFI), plate-plate rheometry, tensile testing and impact measurements, differential scanning calorimetry (DSC), X-ray diffraction (XRD) and scanning electron microscopy (SEM). The results showed an improved intercalation of the MMT clay in the first few extrusions, thus improving the mechanical properties. Increasing the processing steps furthermore lead to a decrease in elastic modulus and impact strength, which was attributed to a reduction in matrix-filler interaction, most probably caused by organoclay degradation as shown by thermogravimetric analysis (TGA). The results of this study provide a useful insight in the recycling of PP/MMT waste streams or the use of clay particles as a strengthening filler agent in the recycling process of different polymer waste streams.