The aim of the present work was to study the microstructure-rheology relationship of PP/EOC blends and their nanoclay containing nanocomposites. The blends and hybrid samples with different compositions were compounded by using a twin screw extruder. The microstructure characterizations of the melt compounded samples were performed by using Rheology in combination with XRD and electron microscopy (SEM). The melt linear viscoelastic results showed a pronounced positive deviation from mixing rule for complex viscosity (ƞ*) as well as storage modulus (G’) at low frequency range; the results which were quiet different from those reported for other immiscible polymer blends. This could be explained in terms of strong interconnectivity between the EOC droplets i.e. the in-situ grafted PP on EOC molecules in the interface can act as long chain branches and promote the inter-molecular entanglements and which will assist bridging between EOC droplets. The addition of nanoclay was found to have a reducing effect on the droplet interconnectivity contribution on the non-terminal storage modulus, although it reduces the EOC droplet size through hindrance effect. This effect was attributed to the preferred localization of nanoclay in the interface and therefore suppressing the interconnectivity. Keywords: Rheology, Polypropylene, EOC, Nanocomposite, Interconnectivity