The construction of organic-inorganic hybrid ferroelectric materials with larger, high-polarity guest molecules intercalated in kaolinite (K) faces difficulties in terms of synthesis and uncertainty of structure-property relationships. The purpose of the present study was to optimize the synthesis method and to determine the mechanism of ferroelectric behavior of kaolinite intercalated with p-aminobenzamide (PABA), with an eye to improving the design of intercalation methods and better utilization of clay-based ferroelectric materials. The K-PABA intercalation compound (chemical formula Al2Si2O5(OH)4∙(PABA)0.7) was synthesized in an autoclave and then characterized using X-ray diffraction (XRD), infrared spectroscopy (IR), thermogravimetric analysis (TGA), and scanning electron microscopy (SEM). The experimental results showed that PABA expanded the kaolinite interlayer from 7.2 Å to 14.5 Å, and the orientation of the PABA molecule was ~70° from the plane of the kaolinite layers. The amino group of the PABA molecule was close to the Si sheet. The presence of intermolecular hydrogen bonds between kaolinite and PABA and among PABA molecules caused macro polarization of K-PABA and dipole inversion under the external electric field, resulting in K-PABA ferroelectricity. Simulation calculations using the Cambridge Sequential Total Energy Package (CASTEP) and the ferroelectricity test revealed the optimized intercalation model and possible ferroelectric mechanism.