The functional properties of corn starch based films were improved by incorporating nanoclay (Montmorillonite). Nanoclay was incorporated in the polymer matrix using two different methodologies and the films were formed by casting. The effect of film preparation methodology and of the nanoclay concentration on the physicochemical properties of the films was studied. Depending on film preparation method used, intercalated or exfoliated nanocomposite films were obtained. The FTIR spectra showed a strong interaction between the montmorillonite and the starch molecules. Opacity was dependent on the nanoclay dispersion method used. Water vapor solubility and permeability decreased with increasing montmorillonite content and were affected by the dispersion method. Water diffusion was only dependent on the nanoclay content due to the increase in tortuosity of the diffusion path, caused by the nanoparticles. The results showed that the incorporation of 5% of montmorillonite using an adequate dispersion method, improved the water resistance and barrier properties of corn starch based films. Nanoparticles reduced the damage caused to the properties of these hydrophilic films by the increase in moisture content.