Halloysite was surface modified by KH550，and the effect of the amount of KH550 on the rate of its activation was studied. Using infrared spectroscopy, thermal gravimetric analysis, contact angle analysis and transmission electron microscopy, the materials’ properties were characterized. The results showed that the surface of halloysite was grafted by KH550 well with its activation rate close to 100 % when content of KH550 at 2 %. The contact angle of modified Halloysite increased from 3° to 110°. Halloysite which was modified by KH550 is 100nm nanotube and its dispersion has been greatly improved.