A method for fabricating a polybenzoxazole/clay nanocomposite material includes performing an ion exchange reaction between an organic amine and Na.sup.+-montmorillonite to form a swelled organoclay. A polycondensation reaction is conducted between two types of monomers, isophthaloyl chloride and 2,2-bis (3-amino-4-hydroxyphenyl) hexafluoropropane to form a polybenzoxaxole precursor polyhydroxyamide to form a PBO/clay composite material.