In this study, low-density polyethylene (LDPE)/modified clay (Cloisite 20A) nanocomposites were formed by melt-mixing Cloisite 20A with LDPE and coupling agent, low molecular weight oxidized polyethylene (OxPE). The effects of cloisite 20A, and OxPE on the morphological, mechanical, thermal and flame retardant properties of ternary nanocomposites based on LDPE were evaluated. The structural properties of nanocomposites were characterized with X-ray diffraction (XRD) and transmission electron microscopy (TEM). Mechanical, thermal and flame retardant properties were characterized by tensile test, differential scanning calorimetry (DSC), and flammable tests, respectively. The dispersion of cloisite 20A in LDPE depends on the amount of OxPE. When the amount of OxPE was 15 wt%, the exfoliated nanocomposite was achieved. Experimental outcomes confirmed that the addition of OxPE to LDPE/cloisite 20A increased tensile strength and tensile modulus but the elongation at break was less than that of LDPE. Cloisite 20A and OxPE addition did influenced the melting/crystallization behavior of the nanocomposites. Significant improvements in flame retardant properties have been identified for ternary nanocomposite.