A facile, efficient and environment friendly method is established to prepare poly(vinyl alcohol) (PVA) based graphene oxide-montmorillonite (GO-MMT) nanocomposites in aqueous media. GO-MMT nanohybrid is obtained by the combination of GO and MMT in water without any reducing or stabilizing agents. The formation of GO-MMT nanohybrid is due to the hydrogen bonding and crosslinking effects. The sodium ions within MMT sheets act as crosslinkers between GO sheets and MMT platelets. The resultant nanocomposites are characterized by means of X-ray diffraction (XRD), scanning electron microscopy (SEM), differential scanning calorimetry (DSC), thermogravimetric analysis (TGA) and mechanical testing. Compared to that of pure PVA, PVA nanocomposites show enhanced thermal stabilities and mechanical properties, which results from strong interfacial adhesion of the nanoadditives in PVA matrix. The further increase in the tensile strength and modulus results from strong interaction between PVA chains and layered GO-MMT as well as good mechanical properties of GO-MMT hybrid, compared to PVA/GO and PVA/MMT nanocompsoites.