Recent interest in renewable, non-toxic binders for structural composites has resulted in the study of epoxidized linseed oil (EL0). Many commonly utilized commercial binders are synthetically derived from petroleum feed stocks and have been shown to be toxic or carcinogenic. ELO, on the other hand, is a renewable and non-toxic resin. In this thesis, a bio-based epoxy thermoset was made from highly functional ELO using a polyethyleneimine (PEI) crosslinking agent. The compatibility of this system with two montmorillonite and two hydrotalcite-based nanoclays was then studied in an attempt to increase the mechanical properties of the epoxy system. The hydrotalcite-based nanoclays were observed to enhance the homogeneity of the ELO-PEI system, whereas the montmorillonites produced inhomogeneous materials in all cases. Wood flour composites were produced by compression molding optimized neat ELO-PEI and hydrotalcite-based nanocomposite formulations with dried softwood flour. This produced wood flour composites with mechanical properties comparable to commercially available particleboards. These findings suggest that the ELO-PEI epoxy is suitable for use as a binder for wood flour composites.