Due to outstanding mechanical properties, heat resistance, and relatively facile production, nanoclay reinforced epoxy composites (NCRE composites) have been suggested as candidate materials for use on external surfaces of spacecraft residing in the low Earth orbit (LEO) environment. The resistance of the NCRE composites to bombardment by atomic oxygen (AO), a dominant component of the LEO environment, has been investigated. Four types of samples were used in this study. They were pure epoxy (0 wt% nanoclay content), and NCRE composites with different loadings of nanoclay—1 wt%, 2 wt%, and 4 wt%. Etch depths decreased with increasing nanoclay content, and for the 4 wt% samples it ranged from 28% to 37% compared to that of pure epoxy. X-ray photoelectron spectroscopy (XPS) indicates that after AO bombardment, relative area of C-C/C-H peak decreased, while the area of the C-O, ketones peaks increased, and the oxidation degree of surfaces increased. New carbon-related component carbonates were detected on nanoclay containing composite surfaces. Scanning electron microscopy indicates that aggregates formed on nanoclay-containing surfaces after AO bombardment. The sizes and densities of aggregates increased with nanoclay content. The combined erosion depths, XPS and SEM results indicate that although all the studied surfaces got eroded and oxidized after AO bombardment, the nanoclay containing composites showed better AO resistance compared to pure epoxy, because the produced aggregates on surface potentially act as a physical “shield”, e ectively retarding parts of the surface from further AO etching.