Maleic anhydride grafted low isotactic homopolypropylene elastomer (LiPP-g-MAH) is used as a compatibilizer in the melting mixing of polypropylene (PP) and clay. The microstructures of the composites of PP/clay (PPCN) are investigated using a wide-angle X-ray diffractometer (WAXD) and transmission electron microscope (TEM) as well as parallel rheometer, which show that PPCN with different phase morphologies have been obtained. it is found that the weight ratio of LiPP-g-MAH to clay and the weight content of LiPP-g-MAH in PPCN have a strong effect on the final dispersibility of the clay. The rheological response to small amplitude oscillatory shear (SAOS) shows that the storage modulus (G') at the low frequencies is greatly sensitive to the microstructures in comparison with WAXD measurements. The investigation further indicates that the virgin clay particles, intercalated silicate crystallites, and exfoliated layers may coexist in the matrix at the same time, resulting in the great enhancement of G' plateau at low frequency region.