Shape memory polymers are strong competitors against shape memory alloys in many similar applications due to their inherent properties. Numerous studies have already reported shape memory properties of pure and blended polymer systems. However, further research is required to address property–structure interplays in nano‐reinforced shape memory composites of low programming temperature with specialty applications including wearing smart cloths, advanced medical devices and biomedical shape memory scaffolds. This research aims to evaluate the overall interplay amongst thermal, structural and viscoelastic properties of nanoclay reinforced polylactic acid (PLA)/thermoplastic polyurethane (TPU) shape memory blends whilst the use of a plasticizer is hypothesized to modify the programming temperature of the fabricated parts. To achieve this, the melt mixing method was utilized in fabrication of nanoclay filled PLA/TPU blends of 60/40 ratio as the optimized reference system. Polyethylene glycol (PEG) was used to reduce the stimulation temperature down to around 42°C. The results showed that the optimal thermal, structural and shape memory properties are obtained when 5 wt% of nanoclay and 10 wt% of PEG are incorporated into the reference blend exhibiting the targeted stimulus temperature as supported by the thermal, structural and shape memory response of the parts. The contact angles, surface energy values and transmission electron microscopy analysis further confirmed the improvement in the miscibility of PLA/TPU blends correlated to the overall shape memory response of the fabricated parts.