The present invention is directed, in part, to improved nanocomposite compositions and processes for preparing same. Specifically, in one embodiment, there is provided a process for preparing an aqueous nanocomposite dispersion, wherein the process comprises: polymerizing via suspension polymerization a suspension comprising at least one ethylenically unsaturated monomer and a hydrophobically modified clay to form the nanocomposite dispersion after polymerization, wherein the hydrophobically modified clay is dispersed in the monomer. Other embodiments include processes for preparing aqueous nanocomposite particles, colloids, and dispersions using hydrophobically modified clays in aqueous systems and compositions comprising same.