An experimental investigation has been carried out to study the feasibility of processing blended powder of polyamide (PA) and organically modified nanoclay using selective laser sintering. The effect of nanoclay on the sintering parameters and mechanical properties of the sintered specimen have been studied. This article presents the details of preprocessing studies required and conducted to find suitability of the blended powder material to be processed on SLS machine. A suitable part bed temperature has also been found to avoid curling as well as to ensure the powder reusability. In this work, laser power, beam speed, scan spacing have been considered as influential operating process parameters and are explored using Taguchi's L-9 orthogonal array. Tensile specimens of PA and PA/clay composite have been fabricated as per ASTM D638 standard and tested for ultimate tensile strength, elongation at break, and Young's modulus using universal testing machine. Ultimate tensile strength and elongation at break are found to be decreased in case of PA/clay composite when compared with virgin polyamide. To understand the sintering insight and to explain the behavior of obtained mechanical properties, further investigations have been carried out using material characterization techniques like X-ray diffraction and scanning electron microscopy. POLYM. COMPOS., 31:732-743, 2010. (C) 2009 Society of Plastics Engineers