Natural dye (Turmeric) was intercalated into montmorillonite by ion exchange and adsorption processes in an attempt to improve the colour fastness and fading property of the dye and also to study the thermal characteristics of the hybrid material thus prepared for wall plastering applications. The resulting nano pigment was characterized by X-ray Diffractometer (XRD), Fourier Transform Infra Red Spectroscopy (FTIR), and Thermal Gravimetric Analysis (TGA). XRD results confirmed an increase in d spacing of 3.5 Å for nanopigment as compared to pure montmorillonite. TGA revealed an increase in thermal stabilities of all samples and also showed delayed decomposition for sample S4 in which clay content was higher, thus ascertaining the effect of barrier property of clay. FTIR results established the bond formation between turmeric and montmorillonite. Thus all results indicate that intercalation of dye into montmorillonite has taken place successfully. © 2017, Clay Minerals Society of India. All rights reserved.