Waterborne polyurethane dispersions (WPUDs) were synthesized successfully from castor oil-based polyol, isophorone diisocyanate and dimethylol propionic acid with NCO/OH ratio of 1.5. Different weight percentages of cloisite 30B (1, 2, and 3 wt%) were loaded with WPUDs to prepare nanocomposite films. Prepared prepolymer and nanocomposite films were characterized using FTIR, XRD, SEM, TEM, DSC, and TGA techniques, and coating properties, such as pencil hardness, abrasion resistance, impact resistance, and contact angle, were evaluated. The results obtained from different amounts of clay loading were compared with the pristine castor oil-based WPUDs. The FTIR spectra deconvolution technique was used to study the hydrogen bonding effect within the polymer with an increase in clay content. TGA analysis showed that the thermal stability of WPUDs increases with cloisite 30B (C30B) content. The surface morphology and hydrophilicity/hydrophobicity nature of the nanocomposite films were characterized using scanning electron microscopy and contact angle measurement. The results obtained from tensile tests indicated that the mechanical property of the dispersion system improved with C30B content.