In the present study the ternary blends of chitosan with inorganic clay vermiculite and montmorillonite clay at various ratios in presence and absence of crosslinking agent glutaraldehyde were prepared by the solution-casting technique. The structure and physical properties of the blend films were analyzed by advanced analytical tools such as Fourier transform resonance spectroscopy (FT-IR), X-ray diffraction (XRD), Differential Scanning Calorimetry (DSC) and Thermo gravimetric analysis (TGA). The obtained results of FT-IR studies reveal the presence of cross linking between the polymers and cross linking agents. The results of TGA and DSC studies confirms that the blend prepared with glutaraldehyde as a cross linking agent was found to be highly thermally stable. The results are discussed.