Olefinic compatibilized blend(R-PP/R-PE)/layered silicate composites have been prepared by melt intercalation technique directed from $Na^{+}$ montmorillonite(MMT) or organophilic montmorillonites while using magnesium hydroxide as flame retardant. Morphology and flammability properties were characterized by X-ray diffraction(XRD), transmission electron microscopy(TEM), scanning electron microscopy(SEM), thermogravimetry analysis(TGA), limiting oxygen index(LOI), UL94 test. It is found that the compatibilized blend/layered silicate(Cloisite 20A) nanocomposites have a mixed immiscible-intercalated structure and there is better intercalation when a compatibilizer is combined with the polymer and layered silicate to be melt blended. A very large increase in the LOI value was observed with hybrid filler addition and further enhancement in thermal stability and compatibility of blend was obtained for the compatibilized blend containing small amount of layered silicate.