Clay materials are widely used in drug delivery systems due to their unique characteristics. Montmorillonite is a major component of bentonite and it has a large surface area, better swelling capacity, and high adsorption capacity. The modification of natural bentonite could improve its sorption ability for new emerging applications. Recent advancements in the polymer-silicate composite have novel biomedical applications in drug delivery, tissue regeneration, wound healing, cancer therapy, enzyme immobilization, diagnostic and therapeutic devices, etc. Perspective view of the montmorillonite- polymer composite as a pharmaceutical carrier in drug delivery systems has been discussed in this review. Different types of modification of montmorillonite for the development of pharmaceutical formulations have also been documented. Many challenges in clay nanocomposite systems of polymer of natural/synthetic origin are yet to be explored in improving antimicrobial properties, mechanical strength, stimuli responsiveness, resistance to hydrolysis, etc. Drug interaction and binding capability, swelling of clay may be carried out for finding possible applications in monitoring delivery systems. Pharmaceutical properties of active drugs in the formulation could also be improved along with dissolution rate, solubility, and adsorption. The clay-incorporated polymeric drug delivery systems may be examined for a possible increase in swelling capacity and residence time after mucosal administration.