Although clay can sorb significant amounts of inorganic contaminants from soils and wastewater, the hydration of exchangeable cations in clay minerals makes it hydrophilic at the clay mineral surfaces and interlayers. Thus, natural clays are often ineffective in complexing and stabilizing toxic organic contaminants in soils and groundwater environment. But, substituting these hydrated cations with cationic surfactant such as QAC(Quaternary ammonium Compound) can change the natural clay from hydrophilic to hydropobic. Furthermore functionalized organoclay can act as a powerful dual function sorbent for both toxic metals and organic compounds. It also can be used as landfill clay liners, slurry walls, nano-composite materials, petroleum tank farms, waste treatment, and filter systems. To use this modified clay minerals effectively, it is required to understand the fundamental chemistry of organoclay, synthetic procedures, its engineering application, bioavailability of sorbed ion-clay complex, and potential risk of organoclay. In this review, we investigate the use, application and historical background of the organoclay in remediation technology. The state-of-the-art of organoclay research is also discussed. Finally, we suggest some future implications of organoclay in environmental research.