The present study describes the preparation and characterization of montmorillonite-urea nanocomposites (Mt-Ur) using aqueous suspension technique at various stirring times and different ratio of montmorillonite to urea (Mt/Ur) via an impure and domestic montmorillonite (Mt), without the application of any chemical reagents and high-energy-demand process (environmentally friendly). The intercalation of urea into Mt interlayer was clearly demonstrated by a significant expansion of d₀₀₁ spacing (interlayer space of Mt) from 1.23 to 1.71 nm which has not yet been reported by aqueous suspension technique. Analyses performed by Fourier transform-infrared spectroscopy (FT-IR), Thermogravimetric analysis (TGA) and X-ray diffraction (XRD) also confirmed the effectiveness of this simple process to intercalate the urea into clay lamella. The release pattern demonstrated that the nanocomposite had a slow-release behaviour for urea dissolution. The results also suggested that the Mt type applied in the current study, in a 1:20 Mt/Ur ratio and stirred for 1 h, possessed desirable ecological and economic efficiency in the production of slow-release urea fertilizer due to the application of the impure and domestic clay which is of very low-cost and eco-friendly. Nevertheless, urea was fully intercalated into the interlayer of clay by a simple technique and with a good slow-release behaviour.