The development of commercially viable “green products” based on natural resources for both matrices and reinforcements for a wide range of applications is on the rise. This effort includes new pathways to produce natural polymers with better mechanical properties and thermal stability using nanotechnology and use of naturally occurring fillers such as lignocellulosic and hemicellulose to make biodegradable rubber composites. The blends of acrylonitrile butadiene rubber (NBR) and styrene butadiene rubber (SBR) with coconut shell powder (CSP) have been prepared by using a compounding technique in presence of different amounts of crysnanoclay (CN). The effect of CN loading on tensile properties, thermal properties, swelling behavior, and water uptake behavior were studied. Significant improvement of Young's modulus and tensile strength was observed as a result of addition of nanoclay to the rubber matrix especially at 10 wt% loading. Presence of CSP resulted in ahigher in water sorption but after incorporation of CN the water sorption tended to decrease. Thermal characteristics were performed using thermogravimetric analysis (TGA). TGA thermograms indicated that incorporation of CSP filler decreases the thermal stability of nanocomposites. The dispersion of CSP and CN in rubber matrix was analyzed from scanning electron microscopy.